GO LONG ON THE BOUNCE OR GO SHORT ON THE BREAKDOWN OF SUPPORT

POSSIBLE TRADE IDEA?

This is basically how I make my short term plays. If the price of MRNA can bounce off support then I will be looking for a long position. If MRNA breaks down below support and a lot of seller step in then I will be looking for a short position. I am judging the entry point of my trade off of the price channel that MRNA has been traveling within for several weeks. It is a very short-term price channel so my trade will be for a very short term time frame as well.

The chart directly below shows you on a very short time frame the price channel that MRNA has been traveling within for several weeks. Most of the market has been rallying in this fashion. Moderna's rally was not as strong bacause the slope of this price channel is not as steep as the other rallying equities. Basically I will be looking to go long if the price bounces off support or I will be looking to go short if the price breaks down below support. I don't like to go short in a rallying market personally. So any short position will absolutely be held for a much less amount of time than a long position. and whether I get a long position or a short position I intend to take most of the profit as soon as it comes. Then I will hold the remaining position and manage it accordingly.

In the chart directly above you can see how there's a divergence in MACD and the price of Moderna. This will happen often in a rallying market so it is possible that this is simply the indicators cooling off from a red hot rally. This could also be a sign that this uptrend is getting weaker and losing momentum, and there could possibly be a reversal temporarily on the short-term time frame. Either direction the market picks I will be prepared.

If we do get some upside for the long term then I have the Fibonacci levels mapped out in the chart directly below. these are strong supports and resistance levels to pay attention to.

One interesting note about MRNA is all of the Insiders selling that took place last week. many of the big executives in the company, including the CEO herself, all were selling large blocks of shares on the open market. this almost absolutely would have aided the red week the Moderna had last week. You can see all the insider transactions and SEC filings below. It was a lot of selling.