In my Outlook for 2025 I list 10 picks.
But then, I end with Honorable Mention stocks that I describe as:
“These stocks faced challenges in 2024, but as we approach 2025, they show promising fundamentals and charts with clear support levels and obvious breakout points.”
Moderna (NASDAQ:MRNA) is first on that list.
The Headlines
- Moderna shares jumped more than 10% (actually nearly 14%) to lead S&P 500 gainers Tuesday, a day after the first bird-flu death was reported in the U.S.
- The biotech company is developing a vaccine for H5N1.
- Despite Tuesday's gains, Moderna shares are down more than 55% over the past year.
Also stated in the Outlook 2025 about the ETF IBB or a member of the Economic Modern Family (Big Brother Biotechnology):
“Should IBB hold the 80-month moving average, we expect an uptrend into 2025, driven by big pharma's focus on immunology and treatments, as well as the growing popularity of diet drugs.”
Looking at the Daily chart of Moderna:
In June 1024, MRNA broke down under the 50 daily moving average. Then in August, MRNA failed the 200-DMA.
Until today, January 7th, the downtrend has been significant.
Now, with the headlines as a catalyst, MRNA cleared the 50-DMA.
We like to see a second-day confirmation of a phase change, in this case from bearish to recuperation.
Leadership is a plus and momentum agrees with the need for confirmation, rallying right into the Bollinger band.
ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
- S&P 500 (SPY) Back below the 50-DMA now
- Russell 2000 (IWM) 220 next support or could be trouble
- Dow (DIA) 422 pivotal support
- Nasdaq (QQQ) 520 did not hold, now looking at the 50-DMA which if cant hold, oops
- Regional banks (KRE) 65 resistance 58 support
- Semiconductors (SMH) 260 super pivotal
- Transportation (IYT) 68 support and 70 resistance
- Biotechnology (IBB) 135 now pivotal
- Retail (XRT) Granny needs to get back over 80.50 and hold Jan lows
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) back below the 200 week MA