Merck & Co (US: MRK) Technical price action shows a bullish rebound despite a break below the diamond top pattern:
- The bullish hammer is seen supporting the US$75.86-US$76.93 support zone 1. Also, the rebound above 200-MA is seen as a clear signal for a strong rebound ahead.
- The bullish hammer closing price was above the 61.8% Fibonacci retracement level of US$70.88-US$91.40.
- Fulfilment of the gap above US$80.00 will confirm last Friday’s gap down as a bullish exhaustion gap, indicating stronger confirmation of the upside.
*Expected timeline of the trade is 15 weeks from the date of report issuance.
CHART LEGEND
Moving Average
Red line = 200 periods MA
Blue line = 50 Periods MA
