Merck & Co. (MRK) has improved from a technical perspective. Let's take a look at the latest charts and indicators to see where buying MRK makes sense.
In this daily bar chart of MRK, below, we can see how prices have bounced off the rising 200-day moving average line several times -- in December, April, May and in June. In hindsight, each of these dips or tests of the 200-day moving average line look to be good buying opportunities. MRK is also above the rising 50-day moving average line. While prices have stalled before in the $66-$67 area, the current rally looks like it has the "legs" to finally break out on the topside.
The daily On-Balance-Volume (OBV) line is pointed up and its rise over the past 12 months suggests strong accumulation. The trend-following Moving Average Convergence Divergence (MACD) oscillator just turned up above the zero line for a fresh go long signal.
In this weekly bar chart of MRK, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been generally positive/bullish the past three years but needs to make a confirming new high soon. The weekly MACD oscillator has been above the zero line since May of 2016 and currently looks poised for a fresh go long signal.
In this Point and Figure chart of MRK, below, we can see that prices have been in an uptrend since the low in early 2009. This chart shows that a recent trade at $66 (the number 6 on the chart) was a breakout and opens the way for potential gains to $73 next.
Bottom line: I like buying strength because it tells me I am trading with the market's direction. I would suggest that traders go long MRK on strength above $67 and risk a close below $63 or approximately where the 200-day moving average line intersects.