Merck stock · open long, week 20
Merck gains 0.9% as the 50-day average holds and the run of lower highs breaks
Our view last week
Merck stock sheds 3% and snaps a 2-week advance: the daily upper Bollinger Band, in the 151.5 area, turned the price back once more, as it did a week ago. The price action has grown more cautious, and weekly technical analysis shows a MACD histogram falling for 4 weeks and money flow still positive but weakening. The trend holds, though: the ADX has been rising for 7 weeks and the trade is up 17.88% since entry. Earnings are due on October 29.
This week's summary
The 50-day average passed its test: during the week the price slid to a new 30-day low, left unconfirmed at the close, then turned up and finished 0.9% higher, near the week's high. A week ago Merck stock had been turned back by the daily Bollinger Band; now the technical analysis shows the run of lower highs broken and money flow rising again, while the MACD histogram has been falling for 5 weeks. The trade is up 18.94%, with earnings due on October 29.
IQS Phase
67
in tension
Signal Strength
38
medium · weak
Sizing
REDUCED
Ranking
#73 / 92
US stocks in progress
Trade P&L %
+18.94%
from signal to date, no stop loss
Merck (MRK) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 73rd among the 92 Longs already running for US stocks in our ranking, with a signal strength of 38 out of 100.
Sector context
SectorHealth Care
Benchmark ETFXLV
Sector regimein positive regime
Performanceweekly +2.79% · monthly +2.54%
MRK belongs to the health care sector (reference ETF XLV). The sector is classified in positive regime according to our weekly reading.
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