Moderna (MRNA) stock came back to life on Friday, as the battered company produced a massive rebound of more than 20% in only a few hours.
The reason for this is well understood at this point. It appears that the new COVID strain discovered in South Africa may necessitate the development of a whole new vaccine to tackle it.
The new strain, which has been given the moniker “Omicron,” appears to be able to evade the current array of vaccinations and maybe more communicable than the prevailing delta strain, according to preliminary findings.
This resulted in a positive day for vaccine producers on Friday, with Pfizer (PFE) stock rising 6% and BioNTech (BNTX) stock rising more than 14%.
Moderna has had one of the poorest performances in the market as a result of disappointing profits in the first two weeks of November. Because the stock had been brutally punished, it was only reasonable that the rebound would be higher in this case.
Moderna Stock Market News
The announcement of Merck’s (MRK) antiviral tablet for COVID was added to the positive news for the stock (but terrible news for the rest of the planet).
In a statement released on Friday, Merck stated that fresh data on their antiviral medicine was not as encouraging as had been previously believed.
A new analysis of Merck’s data found that the tablet lowered the chance of hospitalization and mortality by 30%, a far smaller percentage than previously assumed. Merck’s antiviral tablet, as well as one being created by Pfizer (PFE), had wreaked havoc on vaccine producers’ stockpiles of supplies.
Pfizer’s antiviral medication has shown an 89% reduction in hospitalizations and fatalities, according to preliminary findings. On Friday, shares of Merck (MRK) plummeted by roughly 4% in value.
MRNA Stock Prospects
MRNA CHART Source: Tradingview.com
The stock of MRNA had a respectable performance on Friday, rallying to the 100-day moving average and also to a point of significant volume resistance, which was broken.
Moderna (MRNA) is moving positively here in Monday’s premarket, so it will be fascinating to see whether it can maintain its gains against the $360 resistance level.
Participants would not be tempted to pursue the stock higher at this point and would instead recommend taking a bearish trade with a stop loss at $380. In experts’ opinion, the bearish characteristics have not been completely removed.
The company’s most recent earnings report was a letdown, and the stock market is rebounding as there is still little information available regarding the new COVID version.
Moderna has reached overbought territory on the stochastic oscillator, but no other signal has confirmed this move as of yet.