Each time this has happened since January it has moved higher, but I think it is distribution by a massive seller, akin to the days of Jesse Livermore. It is so unusual that I'd have to say in my nearly 30 years of watching charts that I haven't seen a chart look like this before. If MRK can break under one of these support lines, then it could mark the end of this uptrend. Granted I don't see tremendous downside risk, perhaps 10% or so.
Strategy: Sell short going under 57 with a 59 stop. Target initially 54-53.
Tim 4:16PM EST, May 6, 2014 57.11 last -1.52
Any thoughts for a switch to a long trade?
Seems that for a longer term core portfolio holding this would be a good opportunity.
3%+ dividend. The 53/54 level should hold and I'm fairly confident that MRK will be trading in the 60's very shortly. (early summer)