Merck & Co. (MRK) has traveled higher the past 14 months plus and further gains look possible. Let's review the charts and indicators for an updated strategy.
In this daily bar chart of MRK, below, we can see an uptrend that has survived a number of dips, pullbacks and corrections along the way. MRK has broken below the rising 50-day moving average line several times but has managed to eventually trade up to a new high. There is even a selloff in April that tested the rising 200-day line.
The On-Balance-Volume (OBV) line has moved higher the past year to confirm the uptrend with signs of aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator just turned upwards again to a fresh outright go long signal.
In this weekly bar chart of MRK, below, we can see two trends with half the chart showing a sideways pattern and the second half showing an uptrend. MRK is above the rising 40-week moving average line.
The weekly OBV line has been rising from November 2017 to confirm the bullish price trend.
The MACD oscillator has been above the zero line the past 12 months and has turned up again to a fresh buy signal.
In this Point and Figure chart of MRK, below, we can see the uptrend and a close-by price target of $88. A move above the low $90's will be an historic high and could open the way to further gains.
Bottom line strategy: New longs and old longs could risk below $80 now. Targets are $88 and then $92 followed by the round number of $100.
