Our stock today may sound very familiar, and that’s not only because it’s one of the more well-known stocks on the market today, but also because we talked about it pretty recently. When we last talked about Moderna (MRNA), we made note of the 115 level on the price chart.
Now, the level has come fully into the play after the stock has fallen below this price level. This level has acted as support a few times in the past, but has finally broken down. If the stock holds below this level, more downside could be in the mix.
However, one important thing to note is this stock does have earnings coming up soon, which makes picking which direction this stock will go a bit trickier to figure out. Despite this, the market has been telling us that it plans to take the stock lower.
Earnings is something traders should definitely be aware of in order to better pick your entry for a bearish play. Some may choose to wait until after they announce, some may choose to put on the trader before. For those who put the trade on before, pay close attention to implied volatility (IV), it could cause you to lose the position if the stock pops in the opposite direction.
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