Merck & Co may fall to 95.40 - 99.70

123.6 is our pivot point.

Our preference

The downside prevails as long as 123.6 is resistance.

Alternative scenario

The upside breakout of 123.6 would call for 131 and 135.5.

Comment

The RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the stock is trading under both its 20 and 50 day moving average (respectively at 125.044 and 127.5804). Finally, Merck & Co is trading below its lower daily Bollinger band (standing at 117.21).

Supports and resistances

135.5 **

131 *

123.6 **

120.8

113.13 (USD-last)

103.8

99.7 **

95.4 *

91.2 **

Number of asterisks represents the strength of support and resistance levels.