Merck & Company Inc Forecast and Stock Analysis
Technical MRK stock analysis for February 15, 2019.
|Shorts||2.53% ( 2019-01-31 )|
Merck & Company Inc gained 1.10% in the last trading day, rising from $78.94 to $79.81 The price has risen in 7 of the last 10 days and is up by 4.4% 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, 2.30 million more shares were traded than the day before. In total, 10.35 million shares bought and sold for approximately $826.05 million.
Close price at the end of the last trading day (Friday, 15th Feb 2019) of the MRK stock was $79.81. This is 1.1% more than the trading day before Thursday, 14th Feb 2019.
During day the stock fluctuated 1.08% from a day low at $79.27 to a day high of $80.13.
30 day high of the MRK stock price was $80.13 and low was $72.05.
90 day high was $80.19 and low was $70.89.
52 week high for the Merck & Company Inc - $80.19 and low - $52.83.
Merck & Company Inc has broken the wide and horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $79.31 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $87.50 sometime during the next 3 months.
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 $78.19 and $75.71. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday January 28, 2019, 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)
RSI14 is 85 and the stock is extremely overbought on RSI14, but may also ontinue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $75.44 and $73.37.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Merck & Company Inc finds support just below today's level at $75.44. If this is broken, then the next support from accumulated volume will be at $73.37 and $72.90.
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 $0.86 (1.08%) between high and low. For the last week, the stock has had a daily average volatility of 1.52%.
The stock is extremely overbought on RSI14 (85). 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: $76.25 (-4.47%) (This stock has low daily movements and this gives low risk. The RSI14 is 85 and this increases the risk substantially. There is a buy signal from pivot bottom found 14 days ago.)
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Merck & Company Inc holds several positive signals, but we still don't find these to be enough for a buy-recommendation. At the current level we recommend to hold or accumulate in this position whilst awaiting for further development.