Merck Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Green day on Wednesday for Merck
(Updated on Apr 24, 2024)
The Merck stock price gained 0.0946% on the last trading day (Wednesday, 24th Apr 2024), rising from $126.88 to $127.00. During the last trading day the stock fluctuated 1.79% from a day low at $125.35 to a day high of $127.59. The price has been going up and down for this period, and there has been a 0.2% gain for the last 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 2 million more shares were traded than the day before. In total, 7 million shares were bought and sold for approximately $862.73 million.
The stock is moving within a horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Merck stock with a 90% probability to be traded between $123.74 and $135.00 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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MRK Signals & Forecast
The Merck 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 $126.03 and $125.65. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday, April 16, 2024, and so far it has risen 1.55%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Merck stock
Merck finds support from accumulated volume at $126.38 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $2.24 between high and low, or 1.79%. For the last week the stock has had daily average volatility of 1.22%.
Our recommended stop-loss: $119.80 (-5.67%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 6 days ago.)
Trading Expectations (MRK) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect Merck & Company Inc to open at $126.65, and during the day (based on 14 day Average True Range), to move between $125.06 and $128.94, which gives a possible trading interval of +/-$1.94 (+/-1.53%) up or down from last closing price. If Merck & Company Inc takes out the full calculated possible swing range there will be an estimated 3.06% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $126.38 (0.49%) than the resistance at $130.35 (2.64%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Earnings coming up
Merck will release earnings BMO on Thursday, April 25, 2024.The consensus among the analysts for the expected earnings (EPS) is $1.94. We will update the financials statements for Merck, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 3.53% in the first trading day after earnings release.
Is Merck & Company Inc stock A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Merck stock to perform well in the short-term period.
Current score: 3.256 Buy Candidate Unchanged
Predicted Opening Price for Merck & Company Inc of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $126.65 ( 0.278%) | $127.00 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for MRK
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 128.89 | 1.49 % | |
| R2 | 128.03 | 0.81 % | ||
| R1 | 127.50 | 0.396 % | ||
| Current price: | 127.00 | |||
| Support | S1 | 125.79 | -0.95 % | |
| S2 | 125.26 | -1.37 % | ||
| S3 | 124.41 | -2.04 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 131.95 | 3.90 % | |
| R2 | 131.75 | 3.74 % | ||
| R1 | 130.35 | 2.64 % | ||
| Current price | 127.00 | |||
| Support | S1 | 126.38 | -0.488% | |
| S2 | 123.85 | -2.48% | ||
| S3 | 121.52 | -4.31% |
MRK Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Mar 14, 2024 | Mar 14, 2024 | Apr 05, 2024 | $0.770 | 0.602% |
| 2 | Nov 28, 2023 | Dec 14, 2023 | Jan 08, 2024 | $0.770 | 0.656% |
| 3 | Jul 25, 2023 | Sep 14, 2023 | Oct 06, 2023 | $0.730 | 0.703% |
| 4 | May 23, 2023 | Jun 14, 2023 | Oct 06, 2023 | $0.730 | 0.703% |
| 5 | Jan 24, 2023 | Mar 14, 2023 | Apr 10, 2023 | $0.730 | 0.648% |
FAQ
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