Moderna Stock Jumps Nearly 6% As Vaccine Shows Promising Results in Phase 3 Trial

Summary:

Moderna Inc posts promising Phase 3 trial results, and pleases its investors who respond by sending Moderna's share price 6% higher on the day.

Moderna Inc is back in the news as it experienced a 5.75% jump in its share price today. The spike in Moderna share price came as the company presented new data from trials of its coronavirus vaccine candidate.

In a market brief monitored by Reuters, Moderna Inc reported on Wednesday that analysis of preliminary data from its latest trials indicate that similar immune responses occurred in both young and old participants. The statement said that its coronavirus vaccine candidate, mRNA-1273, produced similar immunogenicity in those aged 56-70 years as it did in younger adults, when delivered at a dose of 100 mcg.

These data came from Phase 3 clinical trials of the coronavirus vaccine candidate, and the positive results mark an important step towards final approval for human use. Typically, a review by the FDA follows a Phase 3 trial, after which a drug/vaccine either gets approved for human use or undergoes Phase 4 testing.

The statement immediately produced a response by investors, who had in the last few weeks, taken profit from earlier spikes and sent the stock into a downward retracement. Moderna Inc currently trades at 70.22 or nearly 6% higher on the day.

Technical Outlook for Moderna Inc

Moderna share price has made a bullish bounce from the 38.2% Fibonacci retracement level of the swing move from the 13 March 2020 low to the 17 July record high. This price level (66.65) therefore serves as the immediate support and is reinforced by the ascending trendline that connects the lows of 21 April, 2 July and 24/25 August. Further advance takes Moderna share price to the 73.40 resistance (21 May and 24 July highs, as well as lows of 23 July, 31 July and 6 August 2020). Price needs to overcome this level to target the resistance formed by the 23.6% Fibonacci retracement at 77.50 (13 July and 5 August highs). The push towards 73.40 needs to overcome the upper border of the channel.

On the flip side, price ascent can get arrested at any of the resistance levels mentioned, forming lower highs that indicate a stall in the uptrend. However, a selloff would occur if Moderna share price breaks below the channel and the ascending support trendline. The price level at this junction (63.45) is the level to beat for sellers, as it also marks the lows of 13 July and 24/25 August. A breakdown of this level opens the door towards the 55.72 price support (lows of 2 June and 2 July). 50.83 may also become relevant if a decline sends Moderna share price below 55.72.