MRK dominated by bulls lifting the market higher throughout the day
Merck & Company Inc. (MRK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MRK ended Thursday at 73.53 surging $5.31 (7.78%), strongly outperforming the Dow Indu. (6.38%). This is the biggest single-day gain in over three years. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 70.38, Merck & confirmed its breakout through the previous session high after trading up to $3.80 above it intraday.
Daily Candlestick Chart (MRK as at Mar 26, 2020):
Thursday's trading range has been $6.08 (8.92%), that's far above the last trading month's daily average range of $4.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MRK.
Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on March 20th, MRK actually lost -6.95% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 76.99 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Merck &. Out of 532 times, MRK closed higher 49.81% 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 55.64% with an average market move of 0.32%.