MRK finds buyers again around 76.07
Merck & Company Inc. (MRK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, MRK finished the week -4.27% lower at 76.37 after edging lower $0.18 (-0.24%) today on low volume, slightly underperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MRK as at May 22, 2020):
Friday's trading range has been $0.59 (0.77%), that's far below the last trading month's daily average range of $1.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MRK.
Prices are trading close to the key technical support level at 75.43 (S1). After having been unable to move lower than 76.27 in the prior session, Merck & found buyers again around the same price level today at 76.07. The last time this happened on May 11th, MRK actually lost -0.92% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test April's nearby low at 72.99.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Merck &. Out of 14 times, MRK closed higher 64.29% 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 57.14% with an average market move of 0.45%.