Trading Idea: - Is Merck close to Resistance?

Published on Monday, 06 August 2012 05:28 Written by TradersHuddle Wire

New York, August 6th (TradersHuddle.com) - Shares of Merck & Co. Inc. (NYSE:MRK) are trading very close to calculated resistance at $45.17. The stock ended the trading session at just $44.15, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $33.13 and by the resistance level at $45.17; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Merck. 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 breaks above its resistance level at $45.17 then traders will get an opportunity to enter the stock as it moves to a higher range.