Stock of the day: Merck

In today’s stock of the day, let’s focus on Merck, analyzing its weekly chart. The chart reveals that the price is rebounding from a critical support level, represented by a black uptrend line that connects the higher lows from 2021. This bounce is particularly noteworthy as it occurred with the formation of two hammer candlesticks on the weekly chart, highlighted in blue. A hammer pattern bouncing off an uptrend line is often a strong bullish signal, suggesting a potential buying opportunity.

The initial target for this upward movement is the yellow horizontal resistance. However, given the strength of this signal, the price could potentially move much higher. A weekly close above this yellow resistance would serve as a strong, long-term buy signal, reinforcing the bullish sentiment. As long as the price remains above the black uptrend line, the outlook stays positive. Conversely, if the price closes a weekly candle below this trendline, it would indicate a shift to a bearish sentiment and trigger a sell signal.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-merck-3