Weaker technical forecast for Merck & Company Inc as stock downgraded to Hold/Accumulate.StockInvest.us, 2 months ago
The Merck & Company Inc stock price fell by -1.81% on the last day (Tuesday, 5th Oct 2021) from $83.10 to $81.60. During the day the stock fluctuated 2.57% from a day low at $81.30 to a day high of $83.39. The price has risen in 7 of the last 10 days and is up by 13.38% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -25 million shares and in total, 29 million shares were bought and sold for approximately $2.36 billion.
On Oct 04, 2021 "SVB Leerink" gave "$101.00 - $104.00" rating for MRK. The price target was set to $84.60+3.9%.
The stock lies the upper part of a wide and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at $83.05 will firstly indicate a slower falling rate, but may be the first sign of a trend shift.Given the current short-term trend, the stock is expected to fall -3.45% during the next 3 months and, with a 90% probability hold a price between $68.67 and $80.19 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
The Merck & Company Inc stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $77.57 and $75.69. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, October 04, 2021, and so far it has fallen -1.81%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Merck & Company Inc finds support from accumulated volume at $81.40 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $2.09 between high and low, or 2.57%. For the last week, the stock has had a daily average volatility of 2.94%.
The Merck & Company Inc stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Merck & Company Inc holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.Check full Merck & Company Inc forecast and analysis here.