Merck & Company Inc (MRK) - August 2, 2023

Drugmaker Merck (MRK) has been slipping down the rankings in the SIA S&P 100 Index Report since March. In July it fell out of the green zone into the Yellow Neutral Zone for the first time since last September and has continued to trend downward. Yesterday, Merck finished in 33rd position, down 2 spots on the day and down 17 places in the last month. A growing combination of indicators suggests that Merck (MRK) shares have peaked and started into a new downtrend. Back in May, a significant high was marked by a bearish Shooting Star doji candle (the opposite of a hammer), which suggested bulls were running out of steam and bears were starting to gather strength. Following an initial correction, MRK peaked at a lower high and since then, the shares have snapped an uptrend line, broken down below their 50-day average and retested it as new resistance, and broken below their 200-day moving average with a death cross of the averages pending.

Initial support may appear in the $100.00 to $102.00 area between a round number and an uptrend line, then closer to $94.00 where a January correction bottomed out. Initial resistance appears at the 50-day average near $110.00.



This 1% chart shows how the technical situation for Merck has deteriorated significantly over the past month. In July, a rebound out of what had looked like a normal correction peaked at a lower high. The shares then staged a bearish Triple Bottom breakdown. Following a small bounce of only 3 rows, the shares have turned downward again, yesterday staging a bearish Double Bottom breakdown and a Bearish Catapult, confirming the start of a new downtrend.

Initial downside support appears near the $100.00 round number, followed on trend by $97.25 based on a vertical count and $91.60 based on a horizontal count. Initial resistance appears near $109.55 based on a 3-box reversal.

With its bearish SMAX score falling to 3, MRK is exhibiting weakness against the asset classes.



Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.