Moving away from the typical crypto posts today.
We are checking out MRK.
This stock has seen some hefty losses in the past few days, pushing the RSI into a oversold area
The increasing bear volume has not been supportive, and the price is breaking past the .382 fib level.
The stock is looking to find support, but the last few days have not...
Earnings winner on Keytruda sales. In @ $77.00. Tight stop - half the way down on today's candlestick ~ $76.49. (I am not about to lose money on this one-much). Has support at $76.50 ish. Nice long strong uptrend, hopefully the momentum will last. Will close after a 2-3 day swing. Will trail stop @ the 3 ema if it continues up - surfing the wave. Target could be...
The stock appears to have formed a double wedge. It has gone up through 2018 and showed great resistance to market volatility. It has a great chance of breaking upper wedge and reach up the 52-week high.
Remember that earnings date is coming and this may be the good catalyst for confirmation of the breakout which will probably happen before earnings.
MRK is approaching our first support at 66.70 (horizontal overlap support, 100% fibonacci extension, 50% fiboancci retracement) where a strong bounce might occur above this level pushing price up to our major resistance at 74.94 (50% fibonacci retracment, 61.8% fiboancci extension).
Stochastic (21,5,3) is also approaching support where we might see a...
Why is this setup good?
Strong contextual uptrend
Price continues moving in the direction of main trend since it bounced at support EMA(100) and EMA(50)
Momentum building on MACD 12-26, MACD signal line crossed the 0 line
First reaction (contraction) since MACD crossover
Trigger Candle testing EMA 3, 6 and 18
Low Setup Risk - just 1.29% in risk
Head and shoulder pattern, right shoulder looking like it is currently in formation. Currenly prices are right at previous resistance and support. If 76.38 is bounced from, short target is at the next level of support at 72.78
RSI and Stoch indicate market is strongly over bought, which further point toward a short play being the case over the next few days.