Shares of drugmaker Merck (MRK) are up sharply early Friday as the company reports its antiviral drug Molnupiravir “appears to inhibit several major variants of Covid-19, including the Delta variant according to research findings in laboratory”.
Let’s take a look at the MRK charts on Friday.
In MRK’s daily bar chart, below, we can see some positive clues ahead of the likely opening of today’s spread. Do you notice the high volume drop made in mid-September? Prices then rose above the 50- and 200-day moving average lines.
The On-Balance-Volume (OBV) line moved up and the Moving Average Convergence Divergence Oscillator (MACD) moved higher below the zero line for a signal to buy hedging shorts.
In the Japanese MRK weekly candlestick chart, below, we can see a bullish piercing pattern in September. This two-week bottom reversal gets bullish confirmation this week.
The weekly OBV line has been stable and is not far from reaching a new high for progression.
In this daily close-only MRK point and number chart below, we can see that the software is projecting a bearish price target. A rally and close at $ 78.26 will be bullish.
Result strategy: MRK is likely to make a hole when it opens on Friday. Prices could continue to soar, but if there is a slight dip or pullback after the first hour of trading on Friday, aggressive traders could step in and buy. Risk at $ 74.
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