Moderna (MRNA) stock traded more than 12% higher on Tuesday following several headline events.
Late Monday afternoon, the Louisiana Department of Health reported the first Bird Flu-related human death in the United Stated.
According to the CDC, Bird flu, also known as avian influenza A (H5N1) or highly pathogenic avian influenza (HPAI), is caused by a virus that can cause serious illness and death in birds and mammals.
The U.S. faces an H5N1 bird flu outbreak, with 66 human cases reported in 2024, mostly mild, and no person-to-person transmission.
The virus has affected wild birds, poultry, and cattle across 50 states, raising egg prices and prompting vaccine development. Public health risk remains low, but monitoring continues.
There is no widely available vaccine currently for the H5N1 bird flu for humans. Several pharmaceutical companies, including Moderna and Pfizer (PFE) are actively developing vaccines.
Moderna is working on an mRNA-based vaccine, supported by $176 million in U.S. government funding. Progress is ongoing, but no vaccines have yet been approved for general use.
Moderna shares have rallied more than 20% over the last month as headlines regarding the Bird Flu have increased attention to the growing concerns for 2025.
The stock remains locked in a long-term bear market trend as shares of Moderna crossed below their 20-month moving average in 2022. Both Moderna and Pfizer were sold heavily by investors after the Covid-19 pandemic concluded.
Tuesday’s rally sent the stock above its 50-day moving average for the first time since June 25, 2024.
The positive move above the stock’s 50-day trendline puts Moderna shares “in play” with traders with a catch.
Moderna’s current price is less than $20 below the psychologically significant $50 price level. Traders often focus on these round-numbered levels as support and resistance points for a stock. Traders should expect that Moderna will see another surge in buying if the stock remains above $50 for more than two trading sessions.
Otherwise, from a long-term perspective, Moderna remains in a long-term bear market trend with a price target of $40.
