Moderna (MRNA) shares will likely remain under scrutiny on Tuesday after plunging nearly 17% Monday as the embattled drug maker slashed its 2025 revenue forecast by $1 billion.

The company, which also said it expects to cut $1.5 billion worth of expenses over this year and the next, continues to face challenges as it manages increasing drug development costs against a backdrop of declining demand for Covid-19 treatments and the slow adoption of its respiratory syncytial virus medication.

Moderna shares have lost around two thirds of their value over the past year as of Monday’s close and have fallen by more than 90% from their August 2021 Covid-era record high.

Below, we zoom out by taking a closer look at Moderna’s weekly chart and identify crucial historical price levels to monitor amid the stock’s sell-off.

Pennant Pattern Breakdown

Since staging a countertrend rally to the 200-day moving average in May last year, Moderna shares have trended sharply lower. More recently, the stock broke down from a two-month pennant pattern, setting the stage for a potential continuation move lower. In addition, today’s sell-off occurred on above-average trading volume, indicating increasing selling pressure.

However, while the relative strength index (RSI) confirms bearish price momentum, the indicator also flashed heavily oversold condition with a reading below the 30 threshold, increasing the possibility for near-term bounces.

Let’s apply technical analysis to point out several crucial support and resistance levels that investors may be watching.

Crucial Support Levels to Watch

The first support level of interest sits around $30. Investors could look for buying opportunities at this level which is near the prominent April 2019 swing high. It also closely aligns with several prices points during the Covid-era volatility in early March 2020.

The bulls’ failure to defend that price opens the door for a retest of the $13 level, a location on the chart where bargain hunters could look to scoop up shares near the stock’s pronounced December 2018 and August 2019 swing lows.

Key Resistance Levels to Monitor

Upon an upside reversal, investors should initially keep an eye on the $57 level. The shares could run into overhead resistance at this price point near a trendline that links the June and September 2020 lows with a period of brief consolidation that formed on the chart in late October last year.

Buying above this level could see a move up to around $68, a level where investors who have purchased shares at lower prices could seek exit points near the October 2020 pullback low and November 2023 trough.

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As of the date this article was written, the author does not own any of the above securities.