10/20/99
Merck & Co (MRK)
Points to watch:
Merck has outperformed the S&P 500
since the beginning of the month and is now near important
resistance. The stock jumped 2.75 yesterday to close at 74.94 after
hitting an intraday high of 75.69.
Resistance is at 75.94, a level which
Merck has been unable to move above since May. Rallies in May and
July ended at this level. The stock moved back above its 200 day
moving average yesterday. Major technical indicators are generally
positive, with weekly RSI, Stochastics, and OBV all rising. Daily
MACD gave a buy signal on September 9/3.
A buy signal would be given on a move
above resistance at 75.94, but more conservative traders might want to
wait for the added confirmation of the stock moving above the 62%
retracement level ( of its 3/19-8/11 decline) before going long the
shares.
