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

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Merck (NYSE:MRK) based on the price action in the company's shares. Yesterday's price range of $61.69 and $62.41 is within the prior day'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. Traders and investors interested in shares of Merck may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Over the past year, Merck has traded in a range of $45.69 to $64.00 and closed yesterday at $61.94, 36% above that low. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.6% while the 200-day MA has slid 0.2%.

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.

Merck has overhead space with shares priced $61.94, or 0.7% below the average consensus analyst price target of $62.39. The stock should discover initial support at its 50-day moving average (MA) of $53.97 and subsequent support at its 200-day MA of $53.26.

SmarTrend recommended that subscribers consider buying shares of Merck on March 7th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $52.34. Since that recommendation, shares of Merck have risen 17.2%. We continue to monitor MRK for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish am inside day candle Merck

Ticker(s): MRK