Trading Idea - Is Merck close to Support?

Published on Monday, 26 July 2010 06:32 Written by TradersHuddle Staff

New York, July 26th (TradersHuddle.com) - Shares of Merck & Co. Inc. (NYSE:MRK) are trading very close to calculated support at $33.65 with current price action closing at just $34.87 places the stock price near levels where traders will start paying attention.

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 $33.65 and by the resistance level at $36.80, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Merck's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $36.80 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.