Is Merck Trade Over?

Published on Thursday, 02 September 2010 23:06 Written by Danny Miller

New York, September 2nd (TradersHuddle.com) - Shares of Merck & Co. Inc. (NYSE:MRK) ended the trading session lower by $0.27 or -0.76% from its previous close. Merck's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Merck & Co., Inc. (NYSE:MRK), the global pharmaceutical company that develops, manufactures, and markets a broad range of human and animal health products. Merck's products include Zocor for treatment of elevated cholesterol, Propecia for treatment for male pattern hair loss, Fosamax for preventive treatment of osteoporosis, and Singulair for treatment of asthma. Merck was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Merck's current stock range is defined by calculated support defined at $34.41 and by the resistance level at $35.99, which should be used by traders planning their trades.

Traders wanting to establish a position in Merck stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Merck shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: