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Possible Bearish Inside Day Candle Pattern Detected for Merck (NYSE:MRK)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Merck (NYSE:MRK) based on the price action in the company's shares. Today's price range of $52.17 and $53.10 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Merck may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, Merck has traded in a range of $40.83 to $53.44 and is now at $52.54, 29% above that low. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.7% while the 200-day MA has risen 0.2%.

Merck (NYSE:MRK) defies analysts with a current price ($52.54) 0.8% above its average consensus price target of $52.12. Merck shares have support at the 50-day moving average (MA) of $48.67 and additional support at the 200-day MA of $47.63.

Merck & Co., Inc. is a global pharmaceutical company that discovers, develops, manufactures, and markets a broad range of human and animal health products. Merck's products include a treatment for elevated cholesterol, a treatment for male pattern hair loss, a preventive treatment for osteoporosis, a treatment for hypertension, and a treatment for allergic rhinitis.

SmarTrend recommended that subscribers consider buying shares of Merck on December 26th, 2013 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $49.56. Since that recommendation, shares of Merck have risen 7.2%. We continue to monitor MRK for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle Merck

Ticker(s): MRK