02/22/00 Merck & Co (MRK)
Points to watch: Merck's
January rally proved to be nothing more than a dead cat bounce. The
stock fell 1.25 on Friday to close at 62 after hitting an intraday low of
61.56. a test of long term support at 60.81-61, a level that stopped
declines in October 1998 and August 1999 now appears likely.
Long and short term technical indicators
have confirmed the stock's decline, and all major indicators remain
negative. Weekly MACD gave a sell signal last week.
A
sell short signal would be given if the stock fails to hold support at
60.81. After a break, the next support is at 57.4, 55.8, 54.3, and
51.7. Resistance is at 66.3-67, and 69.2.
