Pharmaceutical giant Merck (MRK) has returned to the Green Favored Zone in the SIA S&P 100 Index Report for the first time in over two years. Having spent most of the intervening period stuck in the red zone, Merck has been steadily climbing back up the rankings since January. Yesterday the shares finished in 22nd place up two spot on the day and up 12 positions in the last month.
A major breakout is underway in Merck (MRK) shares this week. Continuing an upswing that started back in the winter, the shares have broken through $90.00 to a new-all time high, with this weeks’ Bullish Engulfing candle indicating continuing accumulation.
Initial upside resistance may appear near the $100.00 round number, followed by the $105.00 to $107.50 zone based on measured moves from recent trading ranges. Initial support has moved up toward $84.00.
Back in March, a correction in Merck (MRK) shares bottomed out at another higher low, keeping its uptrend intact. Since then, the shares have resumed their upward course and yesterday, they broke out to a new all-time high, completing a bullish Spread Double Top pattern, confirming a previous Double Top breakout, and signaling the start of a new upleg.
Based on horizontal and vertical counts, upside resistance may appear near $97.15, then the $103.10 to $105.15 area, along with the $100.00 round number. Initial support appears near $82.90 based on a 3-box reversal.
With a bullish SMAX score of 8, MRK is exhibiting strength against the asset classes.
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