Merck Could Be SicklyMerck has struggled for most of the year, and now some traders may look for another push to the downside.
The first pattern on today’s chart is the series of higher lows from mid-November through early last week. MRK has dropped below that line, which may be viewed as a bear-flag breakdown.
Second, prices tested the 50-day simple moving average and stayed below it. That may suggest its intermediate-term trend is headed lower.
Next, compare this price action with similar patterns in September. Also note that Wilder’s Relative Strength Index (RSI) slipped below its 14-day average both times. (See white arrows.)
Finally, MRK is pushing against the $99.14 level where it bottomed in 2023. Are double digits the new normal for the pharmaceutical giant?
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