Watch These Moderna Price Levels as Stock Sinks to 5-Year Low

Moderna (MRNA) shares may remain under the microscope on Tuesday after sinking to a five-year low following news that the Food and Drug Administration’s top vaccine official, Peter Marks, has resigned.

Marks, who helped oversee the development of COVID-19 vaccines, said he would leave his role by the end of this week, citing conflicts with Health and Human Services Secretary Robert F. Kennedy Jr. The resignation follows The Wall Street Journal reporting Friday that Marks was given a choice to resign or be fired.

Moderna shares have lost nearly a third of their value since the start of the year through Monday’s close and trade 95% below their August 2021 Covid vaccine-driven record high. The stock led S&P 500 decliners on Monday, falling 8.9% to $28.35.

Below, we take a closer look at the technicals on Moderna’s weekly chart and identify key price levels that investors may be eyeing.

Hammer Candle Emerges

Since an upswing ran into selling pressure at the 200-week moving average last May, Moderna shares have remained in a steep downtrend.

It’s also worth pointing out that the relative strength index (RSI) has remained below the 50 threshold since July last year, indicating strong downward momentum in the stock’s price.

However, in a small win for the bulls, the shares closed well above their session low in Monday’s trading session to form a hammer, a bullish candlestick pattern with a small body and long wick that signals a shift from selling to buying pressure.

Let’s identify key support and resistance levels on Moderna’s chart by applying technical analysis.

Key Support Levels to Eye

A close below the hammer pattern could see the shares continue their slide to around $23. Investors may seek buying opportunities in this area near the high of the stock’s first week of trading after going public in late 2018, a location that also closely aligns with minor peaks on the chart in February 2019 and February 2020.

The bulls’ failure to defend this region opens the door for a drop to lower support at the $13 level. The shares could encounter support in this location just above their record low near several troughs that formed on the chart between December 2018 and October 2019.

Important Resistance Levels to Watch

An initial recovery effort in the stock could see a retest of overhead resistance around $36. This location on the chart may attract selling pressure near the February countertrend high and early-November low, which also aligns with price spikes in February and March 2020.

Finally, a more-significant trend reversal may see Moderna shares climb to the $68 level. Investors who have accumulated shares at lower prices could look for exit points in this region near a trendline that connects a range of consolidation in late 2020 with the prominent November 2023 swing low.

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As of the date this article was written, the author does not own any of the above securities.