timwest
Short

Merck MRK daily has 5 monster volume days where gap UP's then...

NYSE:MRK   MERCK & COMPANY INC (NEW)
205 3 2
What do you make of this pattern of volume in Merck             MRK             here on the daily chart?

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
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
Very good
Reply
Fantastic results. I captures a little portion of this move thanks to you. (56.60 to 54.9) Thanks!

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)
Reply
Well it's been a fairly good long trade every time that we've got down to this trend line.

However, I do like the short trade here. Upward channels typically break to the downside.

Your strategy looks safe.
+1 Reply
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out