Merck surged in late 2022 and consolidated during the first quarter. Now the drug maker could be breaking out.
The first pattern on today’s chart is the rally between mid-October and early January, which included a breakout to new record highs. MRK then pulled back and retraced almost exactly half the move by early February. It bounced a little before making a slightly higher monthly low in late March.
Second, MACD was rising in October before the previous surge. Notice how it’s climbing in a similar way now.
Next is the 100-day simple moving average (SMA). The stock rallied from it in October -- also resembling the current price action.
Finally, in the shorter term you have the March 7 high of $112.18. Consider how MRK briefly paused at that level in the last two weeks before proceeding to new record territory on Thursday.
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Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the rally between mid-October and early January, which included a breakout to new record highs. MRK then pulled back and retraced almost exactly half the move by early February. It bounced a little before making a slightly higher monthly low in late March.
Second, MACD was rising in October before the previous surge. Notice how it’s climbing in a similar way now.
Next is the 100-day simple moving average (SMA). The stock rallied from it in October -- also resembling the current price action.
Finally, in the shorter term you have the March 7 high of $112.18. Consider how MRK briefly paused at that level in the last two weeks before proceeding to new record territory on Thursday.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.