Moderna Inc ($MRNA) Bulls In Control

The next entry in the theme of Corona Virus stocks is Moderna Inc.  Moderna has had a more steady advance during the COVID-19 spreading worldwide. As such, it is a bit more stable than other names I have covered.  That’s not to say that it hasn’t had astounding returns, which it has, but it is in more of a steady reliable rally.  It also remains very technical as with all other stocks. Lets take a look at what they do as a company:

“Moderna, Inc. is a Cambridge, Massachusetts-based biotechnology company that is focused on drug discovery and drug development based on messenger RNA. The company creates synthetic mRNA that can be injected into patients to help them create their own therapies.”

Moderna has had an impressive rally so far this year.  Also, the structure of this stock looks very constructive compared to others covered in the COVID-19 related field that I’ve done.  With that said, the Elliott Wave view seems to be counting technically clean. Let’s take a look below at the Daily view.

Moderna Inc Daily Elliott Wave


Moderna set all time lows in August 2019 at 11.54. From there a wave ((1)) top was set at 36.00 on Feb 27/2020. From there wave ((2)) is set at 19.31 on Mar 13/2020 and a wave ((3)) advance is currently underway.  The count is getting stretched on the wave ((3)) but the sequence allows for another high for Blue (5) of ((3)). Prices have reached the equal legs extreme area of ((1))-((2)) as shown above, in a blue box.  This is an area where sellers may enter for a pullback in 3, 7 or 11 waves.  Prices entered the box and found resistance to pullback in a blue (4) of ((3)).

Prices still have a bit more upside in wave ((3)) to complete the sequence before a pullback in wave ((4)) is expected.  It’s a bit late in the cycle to start chasing new longs, but the target for ((3)) is the 161.8% extension at 58.85.  After a wave ((3)) is complete, a wave ((4)) pullback in 3,7 or 11 swings is expected to take place.  From there, there is room for a wave ((5)) of Red I to complete the sequence from the all time lows.

Risk Management

Using proper risk management is absolutely essential when trading or investing in a volatile stock such as MRNA.  Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading.