The stocks of the vaccine producers have gained a lot during 2021 due to the wide vaccination campaign around the world. Still, the Covid-19 pandemic is still not over as the virus is mutating and the scientists need to create new and new vaccines. What does it mean for traders? A great opportunity to invest in pharma stocks especially the ones engaged in the production of vaccines.
Moderna
Moderna has joined the S&P 500 index this year. It skyrocketed to almost $500 – the all-time high on these news, but then dropped back to $300 amid the broad market correction. Moderna has recently submitted its COVID-19 booster shots for adults to the FDA. If officials approve it, the stock price of Moderna will rocket! The first resistance level lies at the round number of $350.00. If the stock manages to cross it, the stock may jump above the 50-day moving average at $400.00. Support levels are $295.00 and $250.00.
AstraZeneca
Many hedge funds have added AstraZeneca into their portfolios. Among them are Fisher Asset Management, GQG Partners, and other heavyweights. Apart from producing vaccines against Covid-19, the company produce other medicines and also working on an advanced breast cancer treatment. The key level of $8750 acts now as support, while it was acting like resistance during August. Thus, we might expect the price to retrace to this level and then reverse up to $9000. When AstraZeneca breaks above this level, it will rally up to $9250.
Johnson & Johnson
JNJ sells pharmaceuticals, consumer health products, and many well-known consumer goods (Johnson's Baby products, Acuvue contact lenses, etc). Apart from that, it’s a vaccine maker, and quite successful one! The FDA claimed that a second dose of JNJ Covid -19 vaccine is effective two months after the first. As a result, the JNJ stock skyrocketed.
The stock of JNJ has failed to cross the psychological level of $160.00. If it manages to break it and the high of October 7 at $162.00, we might expect the downtrend to change to uptrend. So far, the stock price is moving in the descending channel. Still, if we look at the weekly or monthly chart, we’ll see that it’s just a correction in the long-term uptrend. Thus, wait for the confirmation of the change of a trend.
Download the FBS Trader app to trade anytime anywhere! For personal computer or laptop, use MetaTrader 5!
