It's not an easy day for holders of shares of medical companies involved in the production of COVID-19 vaccines. During the ongoing Tuesday session on Wall Street, companies such as Pfizer (PFE.US), Moderna (MRNA.US), BioNTech (BNTX.US) and Novavax (NVAX.US) are mostly diving by more than 5%. Novavax is losing the most, as the company's shares are currently down more than 10%. Pfizer today recorded its biggest daily drop since June 2020, sinking more than 5%.
The reasons for such a strong sell-off are not entirely clear. A calming down during today's session and a return to moderate gains on global exchanges may be partly behind the declines. However, the FDA reported today that Covid pills from Pfizer and Merck will be approved later this week. The virus appears to be accelerating, especially when it comes to the United States, where Omicron has become the dominant variant, overtaking the Delta variety. The White House has said it will send 1,000 military medics to help hospitals distribute free tests for Covid, which is expected to go free to more than 500 million people from January 2022.
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Create account Try a demo Download mobile app Download mobile appHowever, it seems most likely that some profit-taking may be taking place on the shares of the largest companies.
Pfizer (PFE.US), D1 interval. Currently, shares of the medical giant are falling from historical highs and were trading today near the 23.6 Fibo retracement. The company has been moving in a strong uptrend for over two months, with a strong support structure at the level of USD 55 per share (the local peak, which was bounced up, and a close convergence of the 23.6% and 38.2% retracements). Source: xStation 5
Moderna (MRNA.US) shares, D1 interval. Moderna's shares are moving in a dynamic downtrend, which over the last month began to take the form of an incomplete downtrend triangle. Breakout below the support at the level of USD 235 per share may encourage the supply side to accelerate declines up to the area of support at USD 193 per share. On the other hand, if the green support zone can be defended, the next resistance will be the breakout above the EMA 200 (yellow line). Source: xStation 5
