Approaching Resistance - Merck

Published on Monday, 06 February 2012 05:24 Written by Christopher Lynn

New York, February 6th (TradersHuddle.com) - Shares of Merck & Co. Inc. (NYSE:MRK) are trading very close to calculated resistance at $39.00 with the current price action closing at just $38.37 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $33.13 and by the resistance level at $39.00, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Merck, as the stock is well above support, however, as the stock pulls back towards $33.13 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $39.00 then traders will get an opportunity to enter Merck stock by establishing a position as the stock moves to a higher range.