Fundamental analysts appear to be positive about a number of Merck & Co.'s (MRK) cancer treatments and that seems to be translating into a strong looking charts and indicators. Let's check.
In this daily bar chart of MRK, below, I see a chart that has ignored the weakness in the broad market. Prices have rallied the past year and trade above the rising 50-day moving average line and above the rising 200-day line. The 200-day line was last tested in September.
The On-Balance-Volume (OBV) line shows us a bullish rise the past year. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to the downside for a take profit sell signal
In this weekly Japanese candlestick chart of MRK, below, a bullish pattern is playing out. Prices are in an uptrend above the rising 40-week moving average line. The three most recent candles show us upper shadows so we need to keep a closer watch on the price action.
A new high for the move up will refresh the uptrend. The weekly OBV line has made a zigzag higher the past three years. The MACD oscillator is bullish.
In this daily Point and Figure chart of MRK, below, the X's and O's are projecting a price target in the $138 area.
In this weekly Point and Figure chart of MRK, below, a $168 price is shown.
Bottom line strategy: In my October 27 review of MRK I wrote that "We were positive on the direction of MRK in our July 22 review. Traders who are long MRK should continue to hold those positions looking for gains to the $130-$134 area." Now traders should continue to hold those longs but raise stops to $104. Our new price target is $138.
