Fri 16'th Nov 2018
Merck & Company Inc Stock Analysis
Technical stock analysis for Fri 16'th Nov 2018
|Shorts||6.14% ( 2018-10-31 )|
Merck & Company Inc gained 1.63% in the last trading day, rising from $74.84 to $76.06 , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 6 of the last 10 days and is up by 5.24% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 1.72 million more shares were traded than the day before. In total, 13.51 million shares bought and sold for approximately $1 027.44 million.
Merck & Company Inc has broken the weak rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $76.02, a level that may pose a second chance to hit a runner. According to fan-theory $80.64 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Only positive signals in the chart today. Merck & Company Inc holds buy signals from both short- and long-term moving averages. In addition, 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 $74.95 and $72.36. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday November 14, 2018, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
The stock holds a RSI14 at 73 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
Merck & Company Inc finds support from accumulated volume at $73.12.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $1.70 (2.28%) between high and low. For the last week, the stock has had a daily average volatility of 1.95%.
The stock is extremely overbought on RSI14 (73). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: $72.37 (-4.85%) (This stock has low daily movements and this gives low risk. The RSI14 is 73 and this increases the risk substantially. There is a buy signal from pivot bottom found 2 days ago.)
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Merck & Company Inc holds several positive signals and has broken the weak rising trend up. As the stock is also in great technical shape, we therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.
|MRK $76.06 $1.22(1.63%)|
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