MRK declines to lowest close since February 11th
Merck & Company Inc. (MRK) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, MRK ended Tuesday at 77.56 tanking $0.97 (-1.24%) on high volume, strongly underperforming the Dow Indu. (0.26%). Today's close at 77.56 marks the lowest recorded closing price since February 11th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 78.47, Merck & confirmed its breakout through the prior session low after trading up to $1.05 below it intraday.
Daily Candlestick Chart (MRK as at Apr 16, 2019):
Tuesday's trading range has been $1.87 (2.36%), that's far above the last trading month's daily average range of $1.10. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MRK.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 100-day moving average at 78.05 for the first time since January 30th. When this moving average was crossed below the last time on January 24th, MRK lost -0.30% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 81.56.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Merck &. Out of 17 times, MRK closed higher 52.94% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 76.47% with an average market move of 1.93%.