MRK.DE finds support at 200-day moving average
Merck Kommanditgesellschaft auf Aktien (MRK.DE) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MRK.DE ended the week -2.7% lower at 86.40 after losing €0.94 (-1.08%) today on high volume. Today's closing price of 86.40 marks the lowest close since July 25th. Closing below Thursday's low at 87.26, the share confirms its breakout through the previous session's low having traded €2.04 below it intraday.
Daily Candlestick Chart (MRK.DE as at Sep 14, 2018):
Friday's trading range was €2.68 (3.06%), that's far above last trading month's daily average range of €1.37. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly above average.
Breaking below the key support level at 86.46 today, it is now likely to act as resistance going forward. After trading as low as 85.22 during the day, the market found support at the 200-day moving average at 85.50.
Though Merck is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.