Stock of the Day: Merck

Merck is having a strong August, and the technical picture looks increasingly bullish. The stock managed to break through two major resistances, which transforms the outlook into a proper buy signal.

The first breakout came with the price pushing above the long-term blue downtrend line, a move that already signaled a shift in sentiment. The second confirmation was delivered when Merck escaped from the pennant formation to the upside, breaking the red upper line of this consolidation. With both barriers now behind, the sentiment has turned clearly positive.

As long as the price stays above those broken resistances, the outlook remains bullish. The next natural target lies on the black horizontal resistance, around the $95 area. Chances of reaching this level are quite high, and traders can consider the current setup as a proper signal to buy.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-merck-7