Swing Trade Idea (MRNA) – December 08, 2022
Our bearish trade for Thursday, December 8th is Moderna Inc. (MRNA). MRNA is part of the Health Care Sector, which has performed at -0.36% over the last week, as it rallied into an area of resistance. As this is a counter-trend trade, we expect MRNA to follow suit and retrace lower.
MRNA had a strong rally into an area of resistance at $180 where it is now showing signs of exhaustion. As this is a counter-trend trade recommendation, we believe MRNA will retrace lower with the next support at $160, providing a good risk/reward bearish entry.
As a close, if MRNA were to trade above $180 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread moves below $5.87.
