Moderna Stock Sinks 3% After Japan Suspends Vaccine

Summary:

Moderna stock (NASDAQ: MRNA) slumped to a two-week low yesterday following the news that Japan has pulled 2.6 million doses of its Covid vaccine.

Moderna stock (NASDAQ: MRNA) slumped to a two-week low yesterday following the news that Japan has pulled 2.6 million doses of its Covid vaccine. The withdrawal follows reports that a black substance was found in Moderna vaccine vials in Okinawa and Tokyo.

The temporary suspension in the two jurisdictions adds to the increasing problems Moderna is facing in Japan. On Saturday, the Japanese government revealed two people died after receiving shots from a now-suspended batch. However, the Health Ministry went on to say that some of the issues may have been caused by incorrectly inserting syringes and said a blanket ban was unnecessary. Furthermore, the government said the suspended doses are safe to use if no contaminants are found.

Nonetheless, the Moderna stock price has resumed its slide lower and is now down more than 25% from this month’s all-time high. Furthermore, MRNA has slipped below an important trend line, which may encourage more selling. However, Moderna’s +250% year-to-date performance still ranks it as the best-performing S&P 500. Although considering the deteriorating technicals, MRNA’s crown may soon slip.

MRNA Price Forecast

Looking at the daily chart, we see the selling accelerated once the stock lost trend line support at $389.00. This technical breakdown should now lead to a test of the 16th of August low at $349.00. below that, the 50-day moving average at $334.07 provides the next significant support.

Above the market, the first resistance is seen at former trend support, now at $394.00. Following that, a series of highs around $413.00 is the next obstacle. If the Moderna stock price clears $413.00, it opens the door to a run at the $497.49 ATH.