Buy signal in its ninth week, gain climbs to 7.07%
Merck +2.8%: fourth test of the highs as the weekly ADX cools
Buy signal in its ninth week, gain climbs to 7.07%
Our view last week
Merck bounces 3.2% off its own 20-day average, with a clean touch in the 123 area followed by a 4% rebound. The weekly technical picture stays constructive - trend intact, health care sector in a strength phase - but the stock is working right up against its all-time highs, already tested three times over the past ten weeks: here discipline calls for a pullback before adding exposure. The buy signal is in its 8th week and the trade's gain climbs to 4.16%.
This week's summary
Merck stock stays glued to its all-time highs, just 2.7% below the 134.63 area - a level already tested 4 times over the past 10 weeks. The week closed up 2.8% and the weekly structure stays bullish, but the pace is losing some edge: the weekly ADX is slowing and last week's candle shows a weaker body than usual. In our technical analysis the buy signal runs into its ninth week, with the trade's gain climbing to 7.07%.
IQS Phase
71
in tension
Signal Strength
38
medium · weak
Sizing
REDUCED
Ranking
#102 / 124
US stocks in progress
Trade P&L %
+7.07%
from signal to today
Rank position
ranks 102nd among the 124 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 +0.92% · monthly +6.01%
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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