By 
Moderna’s stock (NASDAQ: MRNA) dropped to a two-week low yesterday after Japan pulled 2.6 million doses of its COVID-19 vaccine. This decision came after reports surfaced of a black substance found in vaccine vials in Okinawa and Tokyo.
The temporary suspension in these areas adds to Moderna’s growing challenges in Japan. Over the weekend, the Japanese government disclosed that two people had died after receiving shots from a now-suspended batch. However, the Health Ministry suggested that some issues might have been caused by improper syringe insertion and indicated that a blanket ban was unnecessary. The government also mentioned that the suspended doses are safe to use if no contaminants are found.
Despite these reassurances, Moderna’s stock has continued its downward trend, now down more than 25% from this month’s all-time high. Additionally, MRNA has fallen below a key trend line, which could lead to further selling pressure. Even with this decline, Moderna’s year-to-date gain of over 250% still makes it the best-performing stock in the S&P 500, though this position may be at risk given the weakening technical indicators.
On the daily chart, the selling pressure intensified once the stock broke below trend line support at $389.00. This technical breakdown is likely to lead to a test of the August 16th low at $349.00, with the 50-day moving average at $334.07 offering the next significant support level.
On the upside, the first resistance is now at the former trend line support, currently at $394.00. Beyond that, a series of highs around $413.00 presents the next challenge. If Moderna’s stock price surpasses $413.00, it could pave the way for a move toward the all-time high of $497.49.