Above Resistance: Merck

Published on Saturday, 28 July 2012 11:56 Written by TradersHuddle Wire

New York, July 28th (TradersHuddle.com) - Shares of Merck & Co. Inc. (NYSE:MRK) closed the session at $45.10 just above calculated resistance at $44.37. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $33.13 and resistance at $44.37. Given that this range was broken, traders will be closely monitoring Merck's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Merck is still near the broken resistance level, traders will be focusing on the $44.37 level to see if the stock holds the breakout without rolling over.