Recently, new studies were published by the US Centers for Disease Control and Prevention, according to which the effectiveness of Pfizer and Moderna vaccines decreased to 66% due to the appearance.
The Delta strain and that the immunity obtained due to the introduction of these vaccines decreases faster than expected, increasing the population’s doubts about the vaccination process.
Given this situation, the US Food and Drug Administration has granted full approval of the Covid-19 vaccine provided by Pfizer. This may lead to increased confidence in these vaccines and an acceleration of the vaccination process effectiveness of these vaccines increasingly questioned in recent weeks.
Experts suggest that a third booster dose is needed and that, perhaps, vaccination against coronavirus will become annual and seasonal, like a vaccination against influenza.
The latter point will be a plus for pharmaceutical companies since it will provide a significant part of the future income from the sale of vaccines to fight the virus in the coming years.
Even though in previous analyses we noted that after the rapid spread of the Delta strain, there are doubts about the economic recovery due to the severe problems that this strain creates in Asia and the crisis of confidence that it causes about vaccines
Pfizer and Moderna are showing excellent results both in the economic and stock market.
Pfizer Analysis
So far this year, Pfizer’s shares have risen by 31.43% on the stock market mainly due to the strong bullish momentum that it experienced after the breakout of the side triangle figure on July 20.
Gave rise to a bullish rally increase of 22.21% from the level of $ 40 per share before setting historical highs on August 18 at $ 51.86.
This solid upward momentum by Pfizer’s positive results for the second quarter presented on July 28: Earnings per share amounted to $ 1.07, and revenue – $ 18.98 billion. The results exceeded market expectations.
From a technical point of view, the daily chart shows that the price is currently in a correction, which began after the historical maximum during the bullish rally. The price broke through the Fibonacci support level of 23.6%. As a result, the price may continue to correct to the next support level in the zone of the 18-day moving average and the Fibonacci level of 38.2%.
This correction may be a joyous moment for the price due to the overbought solid that we have observed the month. Therefore, if the price can maintain the support level discussed above, it can become a good point for consolidation and new upward momentum.
The loss of this support level can lead to a sharp pullback, which is likely to correct further the previous resistance level in the area of the December 2020 highs.
Moderna Analysis
Moderna has benefited more than anyone in the stock market from the pandemic. In March 2020, the price rose from a level close to $ 30 per share to historical highs of $ 496.71 per share, i.e., the company’s revaluation was more than 1200% in just 18 months, with an annual growth of 278.04%.
As in the case of Pfizer, this company presented excellent quarterly results. On August 5, Moderna presented its results for the second quarter, according to which earnings per share amounted to the US $ 6.46, revenue – US $ 4.35 billion, which far exceeded market expectations.
From a technical point of view, the price is in a situation very main competitor. After reaching record highs, it began a correction, as a result of which the price fell to the level of the 18 – day moving average and the 38.2% Fibonacci level, where it seems to have found support, as the price is again recovering towards the $ 400 per share level.
It is essential to keep an eye on the stock in the coming trading sessions because if it fails to recover to $ 400 per share, the price may begin a correction to the following support levels near the 50% Fibonacci level.
