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Merck & Co. headquarters in Whitehouse Station, N.J. (Daniel Hulshizer/AP)
Merck & Co. headquarters in Whitehouse Station, N.J. (Daniel Hulshizer/AP)

What the Charts Say

Bullish on Merck Add to ...

From $61.62 in 2008, Merck & Co. Inc. declined to $20.05 in 2009 (A-B), rallied to $41.56 in 2010 (C), then settled in a trading range between $30.50 and $39.50 to produce a bullish technical pattern known as a V-Extended (dashed lines).

Merck had a breakout from this range recently and rallied to a high of $45.17 (D) to signal the start of a new up-leg.

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A minor pullback may occur but only a decline below about $39 would be negative. Point & Figure measurements provide targets of $49 and $54.

The large V-Extended formation (dashed lines) supports higher targets.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

Chart source: www.decisionplus.com

Follow us on Twitter: @Monicarizk1, @RonsBriefs

 
Security Price Change
MRK-N Merck & Company 58.43 0.43
0.741 %
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