Merck Expected Resistance?

Published on Wednesday, 25 August 2010 06:56 Written by Christopher Lynn

New York, August 25th (TradersHuddle.com) - Shares of Merck & Co. Inc. (NYSE:MRK) closed the trading session at $34.44 near its 50 day and 200 day moving averages currently set at $35.32 and $36.04 respectively. Merck's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $34.41 and calculated resistance at $35.99. These levels should be watched by traders, as they provide insight into the latest price dynamics in Merck shares.

Traders should evaluate their options if they want to establish a position on Merck given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.