MRK needs to find support - what to look forHey everyone,
Moving away from the typical crypto posts today.
We are checking out MRK.
This stock has seen some hefty losses in the past few days, pushing the RSI into a oversold area
The increasing bear volume has not been supportive, and the price is breaking past the .382 fib level.
The stock is looking to find support, but the last few days have not shown any. Before entering into this long position, we need to see some consolidation on price and bullish movement.
Increasing bear volume after a week of losses is also not supportive of increasing price levels.
The RSI will need to cool off towards the 40-45 range before we can see some bullish movement.
After consolidation, wait for price to retreat to a newly made bullish fib level, signaling a new trend.
Once a new high is made, it opens the stock up to a head and shoulders pattern, pointing south again. We would need to see bullish divergence either from volume or from the RSI to bring price higher after this.
As is, we are in a bear movement that could pose a falling knife until proper support forms.
What do you think? Where could we support form?
-Block
