- Merck & Co., Inc. (NASDAQ: MRK) indicates that the MRK stock price is getting correction due to profit booking
- MRK stock made a growth of 17% in the last one year
- MRK stock price has printed a fresh all-time high of $119.65 in May 2023
Merck & Co., Inc.’s (NASDAQ: MRK) price prediction reveals that the price has been in a correction phase since the MRK stock price printed a new all-time high of $119.65. The MRK stock price began its bullish rally in October 2022 from a price of $84.58 and made it all the way to $119.65 in May 2023. Since then, the price has made a correction of 11.22% to the support of $105.23, prior to the recent recovery.
At the time of writing, Merck & Co., Inc. closed its trading session on Wednesday, 20th July 2023 at $108.46. This marked a bullish jump of 2.37% over the prior day.
Can Merck & Co., Inc. Continue its Uptrend?
Merck & Co. Inc.’s stock price has been following a strong uptrend up until the correction from the all-time high. After that, the bullish momentum faded, and the MRK stock price moved sideways. The price recently took a bounce from the 200 EMA.
The MRK stock has flipped the 9 and 15 EMAs, which is a sign of weakness. The recent correction is due to profit booking, as investors are looking to take some money home. At present, the price has to overcome a local resistance of $108.26, with sustainability above it.
Will the MRK Stock Price Sustain above the key support zone?
On the 4-hour chart, the MRK stock is in a minor downtrend. This can be identified by the price, which creates a series of lower lows and lower highs. Also, the declining volume is adding to the bearishness of the price in the short term. Meanwhile, the MRS stock price made its way below the 9, 15, and 200 EMAs, justifying the selling pressure.
If the price doesn’t recover soon, the MK stock price may slide further down to the lower support levels. If the price breaches $100, then the MRK stock price may undergo a larger correction phase. However, if the bulls show up, the price may continue to move up and print new highs, as the price is not far away from its recent all-time high.
RSI
The RSI indicator is currently at 45.67. It is a bearish condition and the price may continue to move downwards until the RSI goes above 50. An aggressive sell-off may begin if RSI goes below 30
MACD
MACD is trying to make a bullish crossover. However, the indicator is below the 0 line. It means the price may consolidate but it may move up quickly if the indicator crosses the 0 line
200 EMA
On the 4-hour chart, the price is trading below the 200 EMA. This is a bearish sign indicating that the sellers are in control. The 200 EMA acts as a dynamic resistance, and the prices may continue to move down until the price breaks above the indicator.
Conclusion
Merck & Co., Inc.’s (NASDAQ: MRK) price prediction reveals that the price has been in a correction phase since the MRK stock price printed a new all-time high of $119.65. While the price shows weakness, the overall bullish trend won’t be affected until the MRK stock price goes below the 0 line. However, it’s necessary to manage risk and constantly monitor the market for reversals
Technical Levels
- Support level: $105.23
- Resistance level: $115.37
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