Yahoo Finance

Key Takeaways

• Moderna shares soared Tuesday as investors placed bets that the pharmaceutical giant’s development of an H5N1 bird flu vaccine could boost sales after the first death linked to the disease was reported in the U.S.

• The stock closed decisively above the closely-watched 50-day moving average today on the highest volume since December’s triple witching trading session.

• Investors should watch significant overhead areas on Moderna's chart around $57, $72, and $85, while also monitoring important support levels near $44 and $37.

Moderna (MRNA) shares soared Tuesday as investors placed bets that the pharmaceutical giant’s development of an H5N1 bird flu vaccine could boost sales after the first death linked to the disease was reported in the U.S this week.

The stock, which rose 12% to $47.53 on Tuesday, is off to a good start this year after losing more than half of its value in 2024. In recent years, the drugmaker’s sales have contracted amid dwindling demand for its Covid-19 products, while it has continued to increase spending on research and development into new drugs.

Below, we break down the technicals on Moderna’s chart and point out important price levels that investors may be watching.

Decisive Close Above 50-Day Moving Average

After breaking out from a descending channel last month, Moderna shares have continued to trend higher, with the stock on Tuesday closing decisively above the respected 50-day moving average (MA) on the highest volume since December’s triple witching trading session.

Moreover, the relative strength index (RSI) confirms bullish momentum with a reading above 65, but also sits below overbought levels, giving the stock sufficient room to test higher prices.

Let’s identify three key overhead areas where the shares could run into resistance and also point out several important levels that could provide support during pullbacks.

Key Overhead Areas to Watch

The first overhead area to watch sits around $57. The shares could encounter selling pressure in this region near the upper level of a consolidation period that formed within the descending channel between October and November last year.

A close above this level could see the shares climb to the $72 area, a location on the chart where they may face resistance near the early-September low and subsequent countertrend peak later that month.

Further buying may propel a move up to around $85. Investors who have purchased the stock at lower levels could look to offload shares at this level near a multi-month horizontal line that connects the prominent February low with a series of comparable price points throughout August. Depending on the timing of such a move, this region could also find resistance from the nearby falling 200-day MA.