The Moderna stock price screamed to its latest record price yesterday, almost hitting $500. But MNRA can’t keep going up, or can it?
Moderna Inc (NASDAQ: MNRA) gained $70.75 yesterday, setting a new record closing price of $484.47 (+17.10%)/
Moderna is thriving at the moment for obvious reasons. Over the last year, the shares have been on an incredible run as the global vaccination drive gathers pace. However, Investors were given even more reasons to celebrate yesterday, when Australia became the latest Nation to approve Moderna’s Covid-19 vaccine. The country is ordering an initial 10 million doses for 2021, with an option of 15m.
Furthermore, a study by the Mayo Clinic found Moderna’s vaccine may be superior to rivals in fighting the delta-variant strain of the virus. Dr Venky Soundararajan, who led the study, suggested anyone who got the Pfizer vaccine may require a Moderna booster shot.
The market welcomed this, sending the Moderna stock price as high as $493.76 before settling slightly lower.
The stock has enjoyed a stellar run in 2021. MNRA has increased by 365% since the start of the year, and at this rate looks likely to improve on those gains. Furthermore, this performance is even more impressive when considering MNRA finished 2019 trading at $19.56.
The company is clearly perfectly placed to capitalise over the next few years. However, this does not necessarily mean that the stock offers an attractive opportunity at this price.
MNRA technical outlook
The daily price chart shows the stock is deep into overbought territory. The Relative Strength Index (RSI) reading of 86.45 is extremely high and, In normal circumstances, would suggest the rally should soon exhaust.
However, this doesn’t necessarily mean the Moderna stock price can’t go higher. The world is fighting a devastating pandemic, and Moderna offers a viable and effective vaccine.
Therefore, giving a Moderna stock price prediction is extremely difficult considering the unique backdrop. In saying that, there will likely be a queue of buyers waiting to take advantage of any correction.
The big issue that buyers have is the stock could drop 50% and still be in a long term uptrend. This makes it particularly risky for anyone not prepared to absorb substantial losses on their investment.
Moderna stock price chart (Daily)
For more market insights, follow Elliott on Twitter.