The big story in biotechnology this past week has been the rise and fall of Moderna Biotechnology (MRNA) stock. As explained in a previous Moderna Inc Biotechnology stock longs 2020 post for the weekly timeframe a few days ago, we were expecting Moderna Biotech (MRNA) to retrace to weekly imbalance around $20 and that’s exactly what it has done.
The new coronavirus is affecting Moderna Biotech (MRNA) positively since they have been working in the creation of a cure and vaccine for coronavirus. Even if the vaccine Moderna Biotech works, there’s no real business model for vaccines that treat emerging viral threats like coronavirus. This is one of the major reasons why the pharmaceutical industry has generally not focused on these viruses. It is far from clear that Moderna could ever make money from its Covid-19 vaccine. I read from its CEO that the company wasn’t focusing on commercialization of the vaccine, he said that company only focus was public health.
That being said, take a look at what happened to Moderna Inc (MRNA) stock once price hits strong weekly demand imbalance. It kissed the level and reacted very strongly to it. Moderna stock price has moved 80% ever since, that’s a lot. See Moderna Biotech stock analysis in the screenshot below. The trade has already happened as expected, now it’s too late to buy Moderna Biotech.
We did not need to take into consideration any earnings or event, we knew there was a huge imbalance and that’s exactly where we were interested in buying Moderna Biotech (MRNA) stock.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
If you want to learn how to trade stocks using our supply and demand trading strategy, join our supply and demand trading course.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.
Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.