Hello, everyone! Barrie Einarson from Trade Ideas with today’s edition of What Makes This Trade Great! To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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Today, I’m doing something a little different. I don’t often talk about swing trading, but I want you to take a look at Moderna, ticker $MRNA.

Moderna released fantastic news on August 19, a little over a month ago. The stock reacted immediately, shooting up to approximately $177.

After that initial move, $MRNA traded sideways for a while. The company also appeared to announce some type of financing during this period, and the stock eventually pulled back to approximately $130.

At that point, I’m sure many traders thought the move was over.

However, $MRNA formed a nice bottom near that level. Since approximately September 10, the stock has been moving steadily higher. There have been a few red candles along the way, but the overall trend has been almost straight up.

This is an excellent example of why news matters.

The positive announcement initially created a dramatic move, but the opportunity didn’t necessarily end after that first spike. Traders who remained patient and watched the stock establish support could have identified a very interesting swing-trading setup near the bottom.

Not every strong news reaction needs to be traded immediately. Sometimes the better opportunity comes after the excitement settles, the stock pulls back and a clear support level begins to form.

In Moderna’s case, the news was strong enough to continue influencing the stock more than a month later. The pullback toward $130, followed by the steady climb beginning around September 10, created a compelling swing idea.

That is what made the $MRNA trade great!

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This content is for educational purposes only and is not financial advice.