Symbol: MRK (Merck & Co. Inc.)
Timeframe: Daily/Weekly
Strategy: Breakout Trade - Long Position
🎯 TRADE SETUP
ENTRY: $85.50
STOP LOSS: $78.90
TAKE PROFIT: $98.88
RISK/REWARD: 1:2.1
📊 TECHNICAL ANALYSIS
Trend Structure:
✅ All Timeframes BULLISH (Daily, 4H, 1H)
✅ Price breaking above key resistance at $85.00
✅ Strong momentum across all indicators
Key Levels:
Current Support: $83.00-84.00
Breakout Level: $85.00 (previous resistance)
Next Resistance: $92.00 → $98.88
📈 INDICATOR CONFIRMATION
Momentum & Strength:
RSI (14): 60.70 (Healthy momentum, not overbought)
MACD: Bullish crossover above zero line
Volume: Increasing on upward moves
Price Action: Above all major moving averages (20, 50, 200)
Pattern Recognition:
Bullish flag formation breaking out
Higher highs and higher lows structure
Consistent institutional accumulation
💊 FUNDAMENTAL SUPPORT
Healthcare Sector Strength:
Strong pharmaceutical pipeline
Consistent revenue growth
Solid dividend history
Defensive sector characteristics
🎯 TRADE MANAGEMENT
Position Sizing:
Risk: 1-2% of capital per trade
Stop: Hard stop at $78.90 (7.7% risk)
Profit Taking Strategy:
TP1: $92.00 (Partial take profit)
TP2: $98.88 (Full position target)
Alternative: Scale out 50% at $92, 50% at $98.88
Time Horizon: 4-12 weeks
⚠️ RISK MANAGEMENT
Invalidation Criteria:
Daily close below $78.90 = Exit trade
Failed breakout below $83.00 = Reduce position
Warning Signs:
Volume divergence on new highs
RSI bearish divergence
Broad market weakness affecting healthcare
🔄 ALTERNATIVE SCENARIOS
Bullish Case (65%):
Hold above $85.00, rally to $98.88+
Next extended target: $105.00
Neutral Case (25%):
Consolidate between $83-88 before next move
Bearish Case (10%):
Stop hit at $78.90, reassess market structure
💡 WHY THIS SETUP WORKS
Clean breakout with technical confirmation
Favorable 2:1 risk/reward ratio
Defensive sector with strong fundamentals
Multi-timeframe alignment
Tags: #MRK #PHARMACEUTICALS #HEALTHCARE #BREAKOUT #TRADINGSETUP #TECHNICALANALYSIS
Disclaimer: This is technical analysis only. Not financial advice. Always do your own research and manage risk appropriately. Past performance doesn't guarantee future results.
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Timeframe: Daily/Weekly
Strategy: Breakout Trade - Long Position
🎯 TRADE SETUP
ENTRY: $85.50
STOP LOSS: $78.90
TAKE PROFIT: $98.88
RISK/REWARD: 1:2.1
📊 TECHNICAL ANALYSIS
Trend Structure:
✅ All Timeframes BULLISH (Daily, 4H, 1H)
✅ Price breaking above key resistance at $85.00
✅ Strong momentum across all indicators
Key Levels:
Current Support: $83.00-84.00
Breakout Level: $85.00 (previous resistance)
Next Resistance: $92.00 → $98.88
📈 INDICATOR CONFIRMATION
Momentum & Strength:
RSI (14): 60.70 (Healthy momentum, not overbought)
MACD: Bullish crossover above zero line
Volume: Increasing on upward moves
Price Action: Above all major moving averages (20, 50, 200)
Pattern Recognition:
Bullish flag formation breaking out
Higher highs and higher lows structure
Consistent institutional accumulation
💊 FUNDAMENTAL SUPPORT
Healthcare Sector Strength:
Strong pharmaceutical pipeline
Consistent revenue growth
Solid dividend history
Defensive sector characteristics
🎯 TRADE MANAGEMENT
Position Sizing:
Risk: 1-2% of capital per trade
Stop: Hard stop at $78.90 (7.7% risk)
Profit Taking Strategy:
TP1: $92.00 (Partial take profit)
TP2: $98.88 (Full position target)
Alternative: Scale out 50% at $92, 50% at $98.88
Time Horizon: 4-12 weeks
⚠️ RISK MANAGEMENT
Invalidation Criteria:
Daily close below $78.90 = Exit trade
Failed breakout below $83.00 = Reduce position
Warning Signs:
Volume divergence on new highs
RSI bearish divergence
Broad market weakness affecting healthcare
🔄 ALTERNATIVE SCENARIOS
Bullish Case (65%):
Hold above $85.00, rally to $98.88+
Next extended target: $105.00
Neutral Case (25%):
Consolidate between $83-88 before next move
Bearish Case (10%):
Stop hit at $78.90, reassess market structure
💡 WHY THIS SETUP WORKS
Clean breakout with technical confirmation
Favorable 2:1 risk/reward ratio
Defensive sector with strong fundamentals
Multi-timeframe alignment
Tags: #MRK #PHARMACEUTICALS #HEALTHCARE #BREAKOUT #TRADINGSETUP #TECHNICALANALYSIS
Disclaimer: This is technical analysis only. Not financial advice. Always do your own research and manage risk appropriately. Past performance doesn't guarantee future results.
✅ Like if you find this analysis helpful!
🔔 Follow for more high-probability trade setups!
🔄 Share if you're also bullish on healthcare!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.