Stock of the day: Merck
02 September 2024
Merck is approaching a critical juncture that could determine its near-term direction. After a challenging July, where the stock experienced a significant decline, August saw some recovery as buyers attempted to regain lost ground. Although the recovery wasn't complete, it provided some relief, and buyers could consider August a positive month.
Now, Merck is on the verge of testing a crucial resistance level, marked in yellow, just below $120, at $119.4 to be exact. The outcome at this resistance point is pivotal for Merck's future price action. A successful breakout above this resistance would generate a strong buy signal, indicating a continuation of the recovery. Conversely, if the price fails to break through and instead bounces off this level, it would suggest a sell signal, potentially leading to further downside.