Merck fell into uncertainty on long term basis, but is on risk to fall on short term perspective.
On long term perspective price is now in lateral range after it failed 10-year uptrend, by falling below 1st standard deviation from 10-year mean @ 54.65 (now the range upper border). The lower border of the macro lateral range is marked by 5-year mean, standing now...
Merck & Co has been in Bearish Cycle since the major top in 2000. Since when it appear to have completed (a) and (b) of the abc zigzag. Coincidently also we have potential double top in the making. If correct then future for the investors in Merck & Co will get even more murkier and painful as potentially we could have impulsive leg c of the abc unfolding.
Not...
As I point out in the chart, MRK is in a very tight consolidation here. With the RSI holding inside of bullish territory after it's recent bounce off the 150EMA it has run into previous resistance. This resistance coincides with a sort of ascending triangle based on the higher-lows it has been making since March '14. This pattern comes to us after a long run up...
EDUCATIONAL CHART: HISTORICAL REFERENCE
EUPHORIA is anything more than 10 times sales = you'll see it in Drug Stocks, Consumer Brands, Internet Names, Technology (Semiconductors, etc): I've seen it several times since the 1980's. This just goes to show you what can happen AFTER these extreme valuations - a drop of 70%-90%.
I'll publish another chart in...
What do you make of this pattern of volume in Merck MRK here on the daily chart?
Each time this has happened since January it has moved higher, but I think it is distribution by a massive seller, akin to the days of Jesse Livermore. It is so unusual that I'd have to say in my nearly 30 years of watching charts that I haven't seen a chart look like this before. ...
Multiple rejection at channel resistance as price forms firstly a shooting star last week, and a bearish meeting line today. A strong Bearish divergence on Chaikin Money Flow Index is also clear. I expect a retest of 50.85-50.15 support area very soon, unless price manages to take the channel resistance and the high of today's candle.
Bearish Meeting Line: Not...
