MRK closes higher for the 2nd day in a row
Merck & Company Inc. (MRK) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MRK ended Tuesday at 81.59 gaining $0.63 (0.78%), outperforming the Dow Indu. (-0.09%). Trading up to $0.43 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MRK as at Jul 16, 2019):
Tuesday's trading range has been $0.89 (1.09%), that's below the last trading month's daily average range of $1.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MRK.
After spiking up to 81.78 during the day, Merck & found resistance at the 50-day moving average at 81.76. The last time this happened on May 21st, MRK actually gained 1.86% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Merck &. Out of 29 times, MRK closed higher 62.07% 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 68.97% with an average market move of 1.12%.