$MRK about to move back up?Almost identical pattern on the chart, last run up was a new high, same retracement channel, consolidation over the weekend, looking for a move back up inside it's current fib channel
not trade advice
MRKD trade ideas
MRK SELLHi, according to my analysis of mrk stock. The stock looks negative. The stock broke the bottom at the 106 level. It also broke the ascending channel to the upside, as shown in the analysis. These are all indications that the stock is still under pressure from sellers. good luck for everbody
MRK >> Symmetrical Triangle PatternMRK >> symmetrical triangle pattern
I'm trying to find chart patterns that are about to break all-time highs with bullish volume. I'm looking for stocks that have been consolidating sideways with significantly reduced selling pressure. Another important factor is that the market cap should be large, and both revenue and profits should be growing as well.
Merck’s Tight Consolidation Near HighsMerck has moved sideways after breaking out in January. Could traders see potential for more upside in the second half?
The first pattern on today’s chart is the range between the closing prices on March 26 and March 28. This channel is less than $7 wide, or approximately 5 percent of the drugmaker’s share price. Could that narrowness give way to expansion?
Second, this range is above the previous all-time high of $119.65 from May 2023. Such consolidation above the earlier peak could suggest that new support has been established above old resistance.
Third, MRK violated support on May 30 but quickly rebounded. The resulting false breakdown is a potentially bullish reversal pattern.
Next, the 50-day simple moving average (SMA) is above the 100-day SMA. Both are above the 200-day SMA. That configuration, with faster SMAs above slower SMAs, could resemble a longer-term uptrend. (Also notice last week's bounce at the 100-day SMA.)
Finally, our 2 MA Ratio custom script is in the lower study. It shows that the 8-day exponential moving average (EMA) recently crossed above the 21-day EMA. That may reflect an uptrend over the shorter term.
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(MRK) - Navigating Through Market Signals and IndicatorsAbstract:
We perform a comprehensive technical analysis of Merck & Co., Inc. (NYSE: MRK) by dissecting its latest price movements, chart patterns, and technical indicators. This analysis is aimed at shedding light on the potential future price trajectory for MRK, integrating both traditional technical analysis tools and advanced indicators to inform speculative positions.
Price Action and Chart Patterns:
The recent price activity of MRK demonstrates a consolidation phase with a slight bearish inclination. The stock has been traversing within a narrow range following a significant uptrend, as evidenced by the series of higher highs and higher lows from November 2023 to February 2024. The latest candles are positioned within the Ichimoku cloud on the daily chart, which hints at a potential trend ambiguity in the short term. However, the presence of a 'doji' candle followed by a minor bullish candle may suggest an indecision in the market sentiment that precedes a possible trend reversal.
Ichimoku Cloud:
The Ichimoku Kinko Hyo, a pivotal component in our analysis, indicates a transition phase. With the price oscillating within the cloud (known as 'Kumo'), we are in a state of equilibrium, where the bullish and bearish forces are balanced. A decisive breakout above the cloud could signal a bullish continuation, while a drop below the cloud would align with a bearish forecast.
Fibonacci Retracement Levels:
Using the swing high at $133.10 and swing low at $110.65, we observe that the price recently retraced to and slightly surpassed the 0.236 level at $129.83 before recoiling. This behavior showcases the market's respect for Fibonacci retracement levels, often viewed as potential reversal zones.
Moving Averages:
The 50-day and 200-day Moving Averages (MAs) are trending upwards, confirming the general bullish bias in the medium to long term. The recent price action around the 50-day MA suggests this level as a dynamic support.
Volume and Volume-Based Indicators:
The On-Balance Volume (OBV) shows a steady rise, which typically indicates accumulative behavior and can be a precursor to a positive price breakout. This is in congruence with the increasing volume bars seen in recent trading sessions.
Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD):
The RSI hovers around the 50 mark, which is considered neutral territory, although it has descended from overbought conditions. The MACD line is about to cross above the signal line, and the histogram is moving upwards towards the zero line, both suggesting that upward momentum may be gaining traction.
Price Target Speculation:
Assuming the bullish scenario where the price breaks above the Ichimoku cloud, our speculative price targets are set at the Fibonacci levels of $133.10 (0 level) as the first target, and a breach above this level could lead the stock towards the all-time high at $139.00. Alternatively, a bearish downturn would initially aim for the support around the $122 level, coinciding with the 0.786 Fibonacci retracement and the top boundary of the cloud.
Earnings Report:
With the next earnings report due in 8 days, market participants should exercise caution as the release could significantly impact the stock's volatility.
Market Sentiment and Conclusion:
MRK's stock performance is at a crossroads, with technical indicators providing mixed signals. Investors should monitor the key levels indicated by the Ichimoku Cloud and Fibonacci retracements. While the upward momentum could be resurfacing, as suggested by the MACD and OBV, the forthcoming earnings report may serve as a catalyst for a definitive price direction. Prudent traders may consider setting tight stop-loss orders to mitigate risk in the face of potential earnings-induced volatility.
Merck Pulls Back from Record HighDrugmaker Merck has been pushing to new highs, and now it’s pulled back.
The first pattern on today’s chart is a pair of gaps. On February 1, earnings and revenue beat estimates. The second jump on March 27 followed approval of a lung-disease drug. Both of those gaps pushed the stock to record highs.
Next, MRK held last year’s previous all-time high in mid-March. Has old resistance become new support?
Third, the past week saw prices test below the April 26 close of $125.52 but keep closing above it. Is support now established at a higher level?
Next, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in late January. That may suggest the long-term trend has grown more bullish.
Prices are now trying to stabilize at the rising 50-day SMA. Some dip buyers may see an opportunity at that intermediate-term trend indicator.
Finally, MRK reports earnings on April 25. It’s also an active underlier in the options market, with TradeStation data showing average daily volume of 29,500 contracts per day in the last month. Traders seeing potential of an earnings move could find it a potential candidate for a vertical spread.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.
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Merck's New Drug for Rare High Blood Pressure Approved by FDAMerck & Co., ( NYSE:MRK ) has achieved a significant milestone in the realm of medical innovation with the recent approval of its groundbreaking treatment for a rare and life-threatening form of high blood pressure. The approval of the drug, known as sotatercept and to be marketed as Winrevair in the US, by the Food and Drug Administration (FDA) marks a pivotal moment not only for Merck but also for patients suffering from pulmonary arterial hypertension (PAH). Let's delve deeper into the implications of this milestone and its potential impact on both Merck and the medical landscape.
Addressing a Critical Need:
PAH, characterized by dangerously elevated blood pressure in the lungs, poses a significant health threat to thousands of Americans, particularly among the elderly, women, and Black individuals. Despite existing therapies, many patients fail to respond adequately, highlighting the urgent need for innovative treatment options. Merck's Winrevair offers a promising solution, providing hope for improved outcomes and quality of life for PAH patients.
A Game-Changer in PAH Treatment:
Experts have hailed Merck's drug as potentially groundbreaking in the treatment of PAH. With its demonstrated efficacy in clinical trials, including significant improvements in patients' ability to walk and perform daily activities, Winrevair represents a paradigm shift in PAH management. Moreover, its approval for self-administration offers added convenience and flexibility for patients, further enhancing its appeal and accessibility.
Strategic Implications for Merck:
The approval of Winrevair comes at a critical juncture for Merck as it navigates the evolving pharmaceutical landscape. With the looming expiration of market exclusivity for its blockbuster drug Keytruda, Merck has been seeking innovative therapies to diversify its portfolio and sustain long-term growth. Winrevair's potential to generate multibillion-dollar revenues and fill the gap left by Keytruda underscores its strategic importance for Merck's future success.
Market Response and Outlook:
Investors have responded positively to the news of Winrevair's approval, driving a surge in Merck's stock price. Analysts have revised their sales projections upwards, reflecting confidence in the drug's commercial potential and its ability to address unmet medical needs. Moreover, ongoing research into Winrevair's long-term benefits and potential expansion into new patient populations bodes well for its sustained growth and market penetration.
Riding the Bull: Merck & Co. ($MRK)Potential Upside ?Right now, the trend for NYSE:MRK looks positive, meaning it's going up, so it's a good time to take advantage of that momentum. The current value zone, where it's reasonably priced, is between $119 and $124. It's suggested to set a stop loss at $116, meaning if the stock drops below that, it's a signal to sell to limit potential losses. NYSE:MRK is currently below its perceived value, and there's potential for it to reach new all-time highs (ATH). So, it's a good opportunity to ride the wave and possibly make some gains.
Stocks pairs trading: BMY vs MRKAnalyzing the financial metrics and market dynamics of Bristol-Myers Squibb (BMY) and Merck & Co., Inc. (MRK) provides valuable insights for investors considering adjustments to their investment portfolios.
Reasons to Consider Buying BMY Over MRK:
P/E Ratio: BMY's P/E ratio of 12.93 is substantially lower than MRK's P/E of 966.64, suggesting that BMY is significantly undervalued compared to MRK, potentially offering a more attractive investment opportunity based on earnings.
Forward P/E: The forward P/E of BMY at 6.99 compared to MRK's forward P/E of 13.23 indicates market expectations of stronger earnings growth for BMY, further underscoring its attractiveness from a valuation perspective.
Dividend Yield: BMY's estimated dividend yield of 4.93% is higher than MRK's 2.55%, making BMY a more appealing choice for income-focused investors.
Price Performance: Despite a challenging year, BMY's lower 52-week price range decline compared to MRK's near peak levels suggests a potentially lesser downside risk and a more favorable entry point for investors.
Reasons to Consider Selling MRK Over BMY:
Valuation Concerns: MRK's extremely high P/E ratio indicates a potentially overvalued stock, which could be subject to price corrections, especially if earnings growth does not meet market expectations.
Operational Efficiency: MRK's EPS this year growth of 465.38% is impressive but could be difficult to sustain. In contrast, BMY's operations, while showing a decline this year, may have a more stable footing for consistent growth.
Decision:
Buy 3 BMY: With its lower P/E ratio, attractive forward P/E, higher dividend yield, and current market valuation suggesting a potentially undervalued position, BMY appears to be a solid investment for those looking for value, growth potential, and income.
Sell 1 MRK: Considering MRK's extremely high P/E ratio, potential overvaluation, and the risk of market correction, it might be prudent to sell MRK in favor of investments with clearer growth prospects, better valuations, and more attractive dividend yields, such as BMY.
Trailing Stop Line by %This draws a Trailing Stop Line that is n % off the highs - default is 6%. Once the line is hit, it draws an arrow & changes the line yellow. This is useful to see where a broker placed Trailing Stop trade will stop out, when the order is placed using a specified % drawdown in price. It can also be used to see what may be an optimum % to use for a given symbol. This is currently only setup for LONG positions.
Future enhancements will include a line for SHORT positions.
Merck's Keytruda Triumphs in Q4 Reports
Merck & Co ( NYSE:MRK ) has emerged victorious in its fourth-quarter performance, exceeding market expectations fueled by the remarkable success of its flagship cancer immunotherapy drug, Keytruda. The pharmaceutical giant reported robust financials, driven by a 21% surge in Keytruda sales, catapulting it to the status of the world's best-selling prescription medicine. This stellar performance not only defied analyst predictions but also positioned Merck ( NYSE:MRK ) as a frontrunner in the pharmaceutical industry.
Keytruda's Stellar Performance:
Keytruda's sales reached an impressive $6.6 billion in Q4, outpacing estimates and contributing to a total annual revenue of $25 billion. The drug's success is attributed to Merck's strategic efforts to expand its usage in earlier stage cancers. Despite its impending patent expiration by the end of the decade, Keytruda remains a formidable asset for Merck ( NYSE:MRK ), overshadowing even the peak sales of AbbVie's blockbuster arthritis drug, Humira.
Strategic Moves to Counter Patent Exclusivity Loss:
Aware of the looming patent exclusivity loss, Merck ( NYSE:MRK ) has proactively engaged in strategic initiatives to mitigate the impact. The pharmaceutical giant recently entered into multiple deals, including a significant $5.5 billion collaboration with Japan's Daiichi Sankyo for the co-development of three promising cancer drugs. These moves signify Merck's commitment to maintaining its competitive edge and market leadership in the evolving pharmaceutical landscape.
Optimistic Outlook and Pipeline Expansion:
Merck ( NYSE:MRK ) has revised its outlook for the mid-2030s, projecting adjusted annual sales for new oncology products to exceed $20 billion, up from the initial estimate of over $10 billion. The company has similarly elevated its mid-2030s forecast for cardiometabolic products to approximately $15 billion, demonstrating confidence in the potential of its diversified portfolio.
Financial Resilience and Restructuring Efforts:
Despite taking a charge of $1.69 a share related to the Daiichi deal, Merck ( NYSE:MRK ) reported adjusted earnings of 3 cents per share in Q4, defying expectations of an 11 cents per share loss. The company's Q4 revenue of $14.6 billion, a 6% increase from estimates, further underscores its financial resilience. Merck has also initiated a restructuring program aimed at optimizing manufacturing operations for both human and animal health, projecting completion by the end of 2031. While this program incurs approximately $4 billion in cumulative pre-tax costs, Merck's proactive stance signals a commitment to long-term operational efficiency.
Conclusion:
Merck's ( NYSE:MRK ) stellar Q4 results, fueled by Keytruda's exceptional sales performance and strategic initiatives, position the company for a decade of resilience in the face of impending challenges. The pharmaceutical giant's optimistic outlook, robust financials, and proactive measures to address patent exclusivity loss underscore its commitment to innovation, strategic partnerships, and sustained growth.
Merck to Acquire Harpoon Therapeutics in $680M DealNavigating the Oncology Frontier with Harpoon Therapeutics Acquisition
In a significant strategic move, pharmaceutical giant Merck & Co. ( NYSE:MRK ) has announced its plans to acquire cancer drugmaker Harpoon Therapeutics Inc. ( NASDAQ:HARP ) in a transformative deal valued at $680 million. The move aims to solidify Merck's leadership position in the highly lucrative oncology space, diversifying its portfolio and positioning itself for sustained growth in the face of potential challenges for its flagship cancer immunotherapy, Keytruda.
The Deal Overview:
Merck's acquisition of Harpoon Therapeutics involves a payment of $23 per share, more than double Harpoon's last closing share price, signaling Merck's strong commitment to the strategic partnership. The deal is currently pending, awaiting approval from Harpoon shareholders, with the expected closure in the first half of 2024.
Keytruda and Beyond:
Merck's pursuit of Harpoon Therapeutics aligns with its broader strategy of seeking new sources of growth. With Keytruda generating a substantial $20.9 billion in 2022, Merck recognizes the importance of expanding its pipeline to maintain a competitive edge. Harpoon's promising early-stage trials and T-cell engager assets present Merck with an opportunity to diversify its oncology offerings and explore new avenues of therapeutic innovation.
Analyst Insights:
Merck's acquisition of Harpoon is a strategic and value-driven move. The early but promising data from Harpoon's T-cell engager assets, coupled with investor interest in similar technologies, positions Merck for potential growth in the oncology market.
Building a Robust Portfolio:
Merck's proactive approach to portfolio expansion is evident in its recent deals, including the acquisition of Daiichi Sankyo Co.'s experimental cancer drugs and the purchase of autoimmune drugmaker Prometheus. These moves showcase Merck's commitment to staying at the forefront of medical innovation and bolstering its position in key therapeutic areas.
Investor Sentiment and Momentum:
As evidenced by the stock's current trading position near the top of its 52-week range and above its 200-day simple moving average, investor sentiment towards Merck is positive.
Conclusion:
Merck's acquisition of Harpoon Therapeutics marks a pivotal moment in the pharmaceutical landscape, where innovation and strategic partnerships are crucial for sustained growth. By expanding its oncology portfolio with cutting-edge technologies, Merck positions itself as a leader in the fight against cancer, ensuring a robust pipeline and securing its role as a key player in the evolving healthcare landscape. As the deal progresses towards closure, investors and industry observers will keenly watch Merck's journey into a new era of therapeutic possibilities.
MRK - Excellent breakoutNYSE:MRK has shown a strong breakout. We see a steady secondary downtrend from May 2023 to early December. Anchoring a VWAP to the May 202 high and another to the October low give us a clear indication of support and resistance. I missed the breakout and retest in early December, as well as the break above the VWAP from the prior high.
Taking a fib retrace from the May high gives us an overhead target between 120-124, which aligns to analyst consensus 12 month price target. Note the fib time zone from the June low and June high has aligned to changes in price action. The next is April 5.
