MRK closes higher for the 2nd day in a row
Merck & Company Inc. (MRK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MRK ended Wednesday at 85.57 gaining $1.36 (1.62%), significantly outperforming the Dow Indu. (0.13%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 85.17, the stock confirmed its breakout through the previous session high after trading up to $0.93 above it intraday.
Daily Candlestick Chart (MRK as at Sep 16, 2020):
Wednesday's trading range has been $1.60 (1.89%), that's slightly above the last trading month's daily average range of $1.58. 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 lower than usual for MRK.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 85.04 for the first time since September 4th. When this moving average was crossed above the last time on July 27th, MRK gained 0.96% on the following trading day. Unable to break through the key technical resistance level at 85.93 (R1), the share closed below it after spiking up to 86.10 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 87.80, upside momentum could accelerate should Merck & mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Merck &. Out of 465 times, MRK closed lower 56.13% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 49.03% with an average market move of 0.03%.