Will This Major Support Finally Break On Moderna (MRNA)?

While trading is very difficult, it can be one of the easiest, difficult ways to make money. Easy in the sense that it really only takes a computer, trading platform, and an internet connection to get started. Difficult in the mountain of subject matter individuals need to climb in order to get up to speed.

What also makes it difficult, you are constantly going to war with yourself and your own mind. Confidence, discipline, and patience are all things a trader must possess in order to be successful. The mastery of oneself can be the most difficult part when it comes right down to it. This is exactly why it helps to establish your trading system and to stick to it.

However, most people like to over complicate their system. Here, I teach my students to keep it as simple as possible. No flashing lights or an overabundance of indicators that really only serve to cloud your judgement. You just need a few indicators you know how to use, but ultimately, you just need to understand price. What do I mean? Well, let’s take a look at some examples.

For our example today, we will look at a stock familiar to most by now, Moderna (MRNA). When we talk about price, we are talking about how to map out the stock’s movements. This helps us answer the question of what prices matter to the stock and where the stock will react the most. In other words, where is the rest of the market waiting for the stock’s price to reach in order to buy or sell.

When we look at MRNA’s chart, we can see a very strong level of support it is approaching currently and that level is 115. You can see this levels importance by going back in time and seeing how many times this stock has bounced off this level, providing support for the stock to not go lower. Fast forward to now and that level is once again coming back into play.

However, the more times you bounce off a level the weaker it can get. If we look at the price action from earlier in the week, we had a nasty little reversal and back down to this 115 level we went. If the stock were to break this level, expect lower prices to come.

If you’re looking for a short play on any more weakness in the market, this is one trade you’ll want to keep on your radar for a break and hold under 115.

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