ATH $96.69/When Will MRK Top Out?

NYSE:MRK   Merck & Company, Inc
All time high is 96.69 from 2020.
Overbought on weekly but not on the daily or monthly timeframes.

There appears to be a bullish Bat at the Bottom before the move up in blue. Price took off at the .886 and has gone a long way since then. A Bat has it's reversal zone at the .886 and the A-B leg (retracement of the impulse wave) retraces 38.2% to 50% of the distance covered by the X-A leg.

The W that I see (white) encompasses the bullish bat pattern at the bottom, which is unusual but does happen. It could be a bearish Alternative Bat which can terminate near the 1.113 fib level. MRK has just hit this level, so now I am waiting to see indications of price topping out close to here. If price goes too much higher, then the pattern is invalidated. If price goes much higher, my next step would be to look for the 1.618 which is marked and would be an extended harmonic pattern known as a Crab .

Harmonic patterns have 4 legs. The first leg is the impulse wave and bullish harmonic patterns have this wave to the upside whereas bearish patterns have this leg to the downside. They are called bearish patterns as price reverses at the reversal zone on the last leg of the W, but if you know your patterns, this can be a great long, just get out at the end of that last leg, quick! I did well on this one but am setting a tight stop loss for now until I see what unfolds.

The Bullish Crab , Bat, Alternative Bat , Butterfly and the Gartley all have peak 2 lower than peak 1. The Cypher and the Shark have peak 2 higher than peak 1. In the bearish versions, Ws, you can reverse this and valley 2 is higher than valley 1. The 5-0 pattern is an exception to the W M appearance and the bearish version appears as a crooked M.
Possible Bearish diversion between price and RSI .
On monthly there could be a cup like formation, but on daily, it is not well rounded at the bottom. Price would need to break the ATH from 22 years ago to break out of a cup pattern (if this is one). Time will tell which pattern this is (o:

No recommendation.
Comment: Correction: ATH of 96.69 is from the year 2000.

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