MRK closes higher for the 2nd day in a row
Merck & Company Inc. (MRK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MRK finished the month -4.2% lower at 77.33 after gaining $1.21 (1.59%) today, outperforming the Dow Indu. (0.85%).
Daily Candlestick Chart (MRK as at Jun 30, 2020):
Tuesday's trading range has been $1.30 (1.69%), that's below the last trading month's daily average range of $1.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MRK.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, MRK lost -1.62% on the following trading day.
Prices are trading close to the key technical resistance level at 78.34 (R1).
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Merck &. Out of 121 times, MRK closed higher 49.59% 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 61.16% with an average market move of 0.94%.