Based on good technical signals, MERCK & CO. INC. is potentially setting up for a breakout.

Our stock screener has spotted MERCK & CO. INC. (NYSE:MRK) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:MRK.

Technical analysis of NYSE:MRK

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Taking everything into account, MRK scores 7 out of 10 in our technical rating. Although MRK is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• MRK is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• When compared to the yearly performance of all other stocks, MRK outperforms 55% of them, which is more or less in line with the market.
• MRK is an average performer in the Pharmaceuticals industry, it outperforms 61% of 198 stocks in the same industry.
• In the last month MRK has a been trading in the 124.50 - 132.80 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of MRK contains the most current technical analsysis.

How does the Setup look for NYSE:MRK

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:MRK has a 9 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, MRK also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 131.96. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 129.51, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:MRK

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.