Moderna Inc. is a healthcare technology company that works in the biotechnology sector. The current CEO of the company is Stephane Bancel and it was founded in the year 2010. Moderna Inc. has its headquarters in Cambridge and the company was founded by Derrick Rossi and his team.
The most popular vaccine of the company is Spikevax, which is used for the treatment of the COVID-19 virus.
The company has neutral financial ratios resulting in an ROA of 5.52%, following an extremely negative operating margin of -542.73%. The debt/equity ratio of the stock is also neutral resulting in 6.89%.
The average trading volume of MRNA stock over the last three months is 4.063M shares. The market cap of the company is $30.6B followed up with the price-to-earnings ratio of 30.26.
Will the MRNA Stock Break Below The Declining Channel?
The recorded all-time high price for the MRNA stock is $497.49 and since then the share price of the stock has declined by more than 80%. A more than 50% decline in the stock price indicates a weakness in the overall trend of the stock. Thus, we can expect a further decline in the price of the stock.
Based on the recent price action, the declining pattern the share price has formed is a falling wedge pattern. The current behavior of the share price represents a strong presence of sellers in the stock. It has also formed bearish candles for the last seven days. It indicates that the sellers are not giving a single chance to the buyers.
The MRNA stock price is far away from the EMAs following a downtrend. It is led by the death cross of the 50-day and the 200-day EMA.
The RSI of the stock is also oversold on the daily chart, trading at the level of 21.69. The 14-day SMA line has also declined below the 50-level. It indicates a sell signal for the MRNA stock.
Financial Performance of the MRNA Stock
Moderna Inc. has witnessed a sudden spike in its revenue in the year 2021 due to COVID-19 vaccine sales. The revenue of the company jumped from $803.39M in 2020 to $19.11B in 2022. The resulting profit margin for the same year is 43.76%. The reported gross profit for the year 2022 is $13.345B.
Conclusion
Despite the reliable financials of the company, the technical analysis for the MRNA stock represents extreme bearishness in the market price. The price is consistently declining to lower levels and the indicators are giving a sell signal. This stock has formed consistent red candles on the charts.
Therefore, we might get to see lower levels in the MRNA stock price in the upcoming days.
Technical Levels
- Support levels- $36.00 and $54.00
- Resistance levels- $115.00 and $142.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/23/mrna-stock-follows-a-declining-channel-what-can-be-next-move/