Moderna's Stock Plunge: Key Levels to Watch

Moderna's stock has been on a rollercoaster ride, and the latest plunge has investors on edge. The biotech giant's shares tumbled nearly 17% on Monday, April 1, 2025, as the company slashed its 2025 revenue forecast by a staggering $1 billion. This dramatic drop has set the stage for a potential continuation move lower, with crucial support levels around $30 and $13 now in the spotlight. But what does this mean for investors, and what should they be watching for in the coming days and weeks?



The recent sell-off occurred on above-average trading volume, indicating increasing selling pressure. The relative strength index (RSI) confirms bearish price momentum, but it also flashed heavily oversold conditions with a reading below the 30 threshold. This could increase the possibility for near-term bounces, but investors should remain cautious.

Moderna's challenges go beyond just the stock price. The company is facing increasing drug development costs against a backdrop of declining demand for Covid-19 treatments and the slow adoption of its respiratory syncytial virus (RSV) medication. To manage these challenges, moderna has announced plans to cut $1.5 billion worth of expenses over the next two years. This cost-cutting measure is aimed at stabilizing the company's financial health, but it also raises questions about its ability to invest in research and development for new treatments and vaccines.

The slow adoption of Moderna's RSV medication is particularly concerning. The RSV medication was expected to be a significant revenue driver, but its slow adoption indicates that there may be issues with market acceptance, pricing, or competition. This could lead to lower-than-expected sales and revenue, further straining Moderna's financial health.

Investors should keep a close eye on key support and resistance levels as Moderna's stock continues to sink. The first support level of interest sits around $30, which is near the prominent April 2019 swing high and closely aligns with several price points during the Covid-era volatility in early March 2020. If the bulls fail to defend that price, the next support level to watch is around $13, where bargain hunters could look to scoop up shares near the stock's pronounced December 2018 and August 2019 swing lows.

On the upside, investors should initially keep an eye on the $57 level. The shares could run into overhead resistance at this price point near a trendline that links the June and September 2020 lows with a period of brief consolidation that formed on the chart in late October last year. Buying above this level could see a move up to around $68, a level where investors who have purchased shares at lower prices could seek exit points near the October 2020 pullback low and November 2023 trough.



In conclusion, Moderna's recent stock plunge and slashed revenue forecast have created a cautious environment for investors. The focus is now on key support and resistance levels, with investors looking for signs of stabilization or further decline. The company's financial challenges and the broader market's reaction to these developments will likely influence future investment strategies in the biotech sector. As always, investors should do their own research and consult with a financial advisor before making any investment decisions.

Ask Aime: What is the future outlook for Moderna's stock after its recent sharp decline and revenue forecast cut?