Moderna Stock Surges 12%: Key Price Levels to Watch
AInvestWednesday, Jan 8, 2025 12:00 am ET
3min read
CHRO --
MRNA --


Moderna's stock price surged by 12% on Tuesday, January 8, 2025, following the announcement of the first H5N1 bird flu death in the United States. Investors are betting that the pharmaceutical giant's development of an H5N1 bird flu vaccine could boost sales. As the stock breaks out from a descending channel and closes decisively above the 50-day moving average (MA) on high volume, investors should monitor key price levels to identify potential resistance or support.



Key Overhead Areas to Watch
Investors should keep an eye on the following overhead areas where Moderna's stock could encounter resistance:

1. $57: The first overhead area sits around $57, where the shares could encounter selling pressure near the upper level of a consolidation period that formed within the descending channel between October and November 2024.
2. $72: The second overhead area is around $72, where the shares may face resistance near the early-September low and subsequent countertrend peak later that month.
3. $85: Further buying may propel a move up to around $85, where investors who have purchased the stock at lower levels could look to offload shares. This level also finds resistance near a multi-month horizontal line that connects the prominent February low with a series of comparable price points throughout August 2024.

Important Support Levels to Monitor
During retracements, investors should initially focus on the following support levels:

1. $44: The first important support level is around $44, where the 50-day MA and a short-term trendline extending back to mid-November 2024 converge.
2. $37: A breakdown below the $44 level opens the door for a potential retest of the $37 level, a region where investors may look for buying opportunities around the November swing low.



Moderna's stock has shown strong momentum, as indicated by its recent breakout from a descending channel and a decisive close above the 50-day MA on high volume. The relative strength index (RSI) confirms this bullish momentum, with a reading above 65 but below overbought levels, suggesting there is still room for the stock to test higher prices. However, investors should remain vigilant and monitor these key price levels to identify potential resistance or support as the stock continues to trend higher.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.