Hi all,
Merck & Co. (MRK) is a global pharmaceutical titan and is currently trading near its 52-week low of ~$79. Anchored by Keytruda’s 7% YoY revenue growth, a stable ~4% dividend yield, and an average fair value estimate of $156.59 (98% upside), MRK appears significantly undervalued.
Analysts forecast a 12-month price target of $118.05, implying 49% upside, supported by a strong pipeline and solid financials. While tariff concerns and Keytruda’s 2028 patent expiration pose risks.
Technically speaking, MRK has fallen 43% from its all-time high and has reached the strongest area on the chart—a key support zone offering a compelling opportunity to build mid- or long-term positions. This critical area is defined by multiple technical factors, creating a high-probability setup for a potential reversal:
Strategic Guidance:
This setup requires strong conviction. If you’re not prepared to buy in the lower gray areas of this support zone (marked on the chart), do not initiate a position.
In today’s market sentiment, your fundamental research must be robust, and technical analysis allows you to get that much confidence to make it happen!
Ask yourself: If the price falls further into the gray zones, am I willing to buy more? If your answer is yes, the current price presents a strong entry point for mid- to long-term positions.
If the answer is no—if you’re unsure about buying at lower levels or find yourself questioning what to do if prices drop further—refrain from starting a position. In volatile markets, clarity and discipline are essential. Only enter if your strategy is clear and your conviction matches the opportunity!
Good luck,
Vaido
Merck & Co. (MRK) is a global pharmaceutical titan and is currently trading near its 52-week low of ~$79. Anchored by Keytruda’s 7% YoY revenue growth, a stable ~4% dividend yield, and an average fair value estimate of $156.59 (98% upside), MRK appears significantly undervalued.
Analysts forecast a 12-month price target of $118.05, implying 49% upside, supported by a strong pipeline and solid financials. While tariff concerns and Keytruda’s 2028 patent expiration pose risks.
Technically speaking, MRK has fallen 43% from its all-time high and has reached the strongest area on the chart—a key support zone offering a compelling opportunity to build mid- or long-term positions. This critical area is defined by multiple technical factors, creating a high-probability setup for a potential reversal:
- Role Reversal Support: A broad, well-established resistance zone, aged like fine wine, has now flipped to act as support. This classic role reversal provides significant confluence to the setup.
- Textbook Trendline: A perfectly respected trendline, straight out of technical analysis textbooks, has consistently held. The price has approached this trendline from higher highs, underscoring its strength as a key support level.
- 50% Retracement Level: A critical level often watched for potential reversals.
- Monthly EMA200 Confluence: The 200-period exponential moving average on the monthly chart adds further strength to this area, reinforcing its technical significance.
Strategic Guidance:
This setup requires strong conviction. If you’re not prepared to buy in the lower gray areas of this support zone (marked on the chart), do not initiate a position.
In today’s market sentiment, your fundamental research must be robust, and technical analysis allows you to get that much confidence to make it happen!
Ask yourself: If the price falls further into the gray zones, am I willing to buy more? If your answer is yes, the current price presents a strong entry point for mid- to long-term positions.
If the answer is no—if you’re unsure about buying at lower levels or find yourself questioning what to do if prices drop further—refrain from starting a position. In volatile markets, clarity and discipline are essential. Only enter if your strategy is clear and your conviction matches the opportunity!
Good luck,
Vaido
🔍I do the technicals - so You don’t have to.
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🔍I do the technicals - so You don’t have to.
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
📊Follow my research on Substack:
👉vaido.substack.com/ - ENG
👉vaidoveek.substack.com/ - EST
🚀 Actionable market analysis, ideas, and education
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.