A closer look at biotech stocks
The biotech industry has always had a high potential to grow, but the pandemic has boosted this sector even more and as a result, attracted many new investors especially vaccine producers. Let's go through the top stocks of the biotech industry.
Moderna surged on the announcement that its Covid-19 vaccine was granted provisional registration by Australia's administration. Moderna is planning to supply as many as 25 million doses of its vaccine to the Australian government by 2022.
However, this company has a unique feature. It has joined one of the most credible stock indexes in the US - the S&P 500 index. It helped the stock to rise even more! Check our recent article to see what happened with Tesla when it joined S&P 500.
Moderna has almost reached the psychological mark of $500.00, but as it often happens, it has failed to cross such an important level on the first try. We can expect that sooner or later, it will break this resistance level and rally up further to the next round number of $550.00. Support levels are $400 and $350.00.
BioNTech and Pfizer have recently published better than expected earnings results for the second quarter. The companies claimed they can produce up to 3 billion Covid-19 vaccines this year, with capacity increasing to 4 billion doses in 2022. Pfizer is getting closer to the $50.00 level, while BioNTech has reversed down from $463.00.
Meanwhile, Novavax has gained from Barron's article. It was written that the New York State Common Retirement Fund, the third-largest public pension in the US, has increased its stake in Novavax and other vaccine stocks. However, the vaccine maker claimed that it would delay submission of its Covid-19 vaccine to the Food and Drug Administration for emergency use authorization until the fourth quarter.
The breakout above the $240.00 resistance level will push the stock up to the high of April 27 at $260.00. After that, the stock price may jump to an all-time high near $320.00. Support levels are the 100- and 200-day moving averages of $190.00 and $170.00, respectively.
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