Symbol: MRK (Merck & Co. Inc.) Timeframe: Daily/Weekly Strategy: Breakout Trade - Long Position 🎯 TRADE SETUP ENTRY: $85.50 STOP LOSS: $78.90 TAKE PROFIT: $98.88 RISK/REWARD: 1:2.1 📊 TECHNICAL ANALYSIS Trend Structure: ✅ All Timeframes BULLISH (Daily, 4H, 1H) ✅ Price breaking above key resistance at $85.00 ✅ Strong momentum across all indicators Key Levels: Current Support: $83.00-84.00 Breakout Level: $85.00 (previous resistance) Next Resistance: $92.00 → $98.88 📈 INDICATOR CONFIRMATION Momentum & Strength: RSI (14): 60.70 (Healthy momentum, not overbought) MACD: Bullish crossover above zero line Volume: Increasing on upward moves Price Action: Above all major moving averages (20, 50, 200) Pattern Recognition: Bullish flag formation breaking out Higher highs and higher lows structure Consistent institutional accumulation 💊 FUNDAMENTAL SUPPORT Healthcare Sector Strength: Strong pharmaceutical pipeline Consistent revenue growth Solid dividend history Defensive sector characteristics 🎯 TRADE MANAGEMENT Position Sizing: Risk: 1-2% of capital per trade Stop: Hard stop at $78.90 (7.7% risk) Profit Taking Strategy: TP1: $92.00 (Partial take profit) TP2: $98.88 (Full position target) Alternative: Scale out 50% at $92, 50% at $98.88 Time Horizon: 4-12 weeks ⚠️ RISK MANAGEMENT Invalidation Criteria: Daily close below $78.90 = Exit trade Failed breakout below $83.00 = Reduce position Warning Signs: Volume divergence on new highs RSI bearish divergence Broad market weakness affecting healthcare 🔄 ALTERNATIVE SCENARIOS Bullish Case (65%): Hold above $85.00, rally to $98.88+ Next extended target: $105.00 Neutral Case (25%): Consolidate between $83-88 before next move Bearish Case (10%): Stop hit at $78.90, reassess market structure 💡 WHY THIS SETUP WORKS Clean breakout with technical confirmation Favorable 2:1 risk/reward ratio Defensive sector with strong fundamentals Multi-timeframe alignment Tags: #MRK #PHARMACEUTICALS #HEALTHCARE #BREAKOUT #TRADINGSETUP #TECHNICALANALYSIS Disclaimer: This is technical analysis only. Not financial advice. Always do your own research and manage risk appropriately. Past performance doesn't guarantee future results. ✅ Like if you find this analysis helpful! 🔔 Follow for more high-probability trade setups! 🔄 Share if you're also bullish on healthcare!

======= Volume ======= -neutral ========== Price Action ========== - Bearish flag noticed - Weak buying pressure after price gap up ================= Technical Indicators ================= - Ichimoku >>> price above cloud >>> Green kumo thinning >>> Tenken + Chiku - above clouds and towards >>> Kijun - Above clouds and moving towards ========= Oscillators ========= - MACD turning bearish - DMI turning bearish - StochRSI, turning bearish ========= Conclusion ========= - short to long term breakout swing - price may reverse at current level, to enter spot or wait for pullback at entry 2.

Demand Higher low Yearly price income Pre 100 2026 -2027

. Overall Setup The stock has been in a prolonged downtrend (red descending channel), which was broken by a falling wedge pattern (a bullish reversal signal). After the breakout, price attempted to recover but was rejected around Top 1 – Top 2 (~$86). It is now pulling back toward a key support zone near $78. 2. Support & Resistance Strong support: $77–78 → potential rebound area (bottom of the channel + high-volume zone). Resistance levels: $82 (first intermediate resistance). $86–88 (previous tops). $95–100 (psychological + technical level). Final bullish target: ~115, projected from the wedge breakout. 3. Technical Indicators Bollinger Bands: price is at the lower band → potential reversal zone. RSI (14): Currently oversold (~35). Past bullish signals (April) anticipated a rally. Volume: declining during the recent drop → bearish pressure may be fading. 4. Bullish Strategy Entry: accumulate in the $77–78 support zone (oversold RSI + lower Bollinger band). Confirmation: breakout above $82 with volume. Targets: First: $86–88 (closing the gap + double top). Second: $95–100. Final: ~115 (wedge projection). Stop-loss: below $76 (support invalidation). Position management: take partial profits at resistance levels, hold a core position for the final target. 5. Strategy Narrative This is a technical rebound play based on: a completed bullish reversal pattern (falling wedge), RSI in oversold territory, price near the lower Bollinger band, and the expectation of regaining lost ground toward and above $100. The idea is to use the current pullback as a buying opportunity, positioning for a renewed bullish momentum.

Merck has been sliding for more than a year. Now, following a period of consolidation, some traders may see further downside risk. The first pattern on today’s chart is the range between the August 26 high of $85.59 and the August 28 close of $83.21, where the pharmaceutical giant spent almost three weeks. It closed under support on Friday and continued lower yesterday. That may suggest that support has been broken. Second, the 8-day exponential moving average (EMA) crossed below the 21-day EMA. MACD is also falling. Those signals could suggest the short-term trend has grown bearish. Next, August saw a lower high relative to late March (which also featured lower peaks than previous months). That may confirm a longer-term downtrend is in effect. Finally, MRK is back under its 50-day simple moving average. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com . Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com . System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com for further important information explaining what this means.

Stock: Merck & Company (MRK) – NYSE Timeframe: 1H (short–to–mid term outlook) Current Situation The stock is trading around 85.16 – 85.33. It has broken out of a long descending channel (yellow zone), signaling a potential trend reversal to the upside. Suggested entry on the chart: Buy at 84.80 with a stop loss at 72. Targets Target Zone 1: 92.93 – 93.35 First major resistance area. Good level for partial profit-taking. Target Zone 2: 106.81 – 109.72 Strong resistance and confirmation of a mid-term uptrend continuation. Target Zone 3: 116.16 – 120.31 Key historical resistance. A breakout above this range could trigger a much larger bullish wave. Risk Management Stop Loss: 72 (below the last swing low – breaking it invalidates the bullish scenario). Risk/Reward Estimate: Entry 84.80 → First target 93 = ~+10%. Potential downside to stop loss = ~–15%. Best approach: scale out – take partial profits at target 1, let remaining shares ride toward higher targets. Technical Notes Breakout from the downtrend channel = bullish signal. Recent formation of higher lows supports upward momentum. Strong support lies in the 80 – 82 range. ✅ Conclusion: MRK shows signs of reversal and recovery after a prolonged downtrend. Buying around 84.80 is valid with a strict stop at 72. First target is 93, then 107, with a potential extension toward 116–120 if bullish momentum continues.

The white fork is pointing slightly to the upside. CIB is broken and signals a change in behavior. The pullback to it was very nice - a Eye twinkle? §8-) Then price opened the door to the upside by peeking through the resistance of the consolidation, asking: "Anybody here to buy me?"...silence...so far. OK, let's be patient and wait for another sign or hint. Until the, stalking hat on, as my mentor Shane always said. --> NO FOMO IN THIS CLASS! <--

1->3 : we create a double top with the area above 1 and 3 being a pressure zone pushing price down 2: this is the low created when sellers entered the first time 4: the is the low created when sellers entered the second time 3 : due to the fact that the sellers that originated from 3 created a lower low , from the buyers that came from #2, this is now the strongest market participant, 3 is currently in control of the market, the sellers from there, until proven otherwise 4->5 : we return to the solid major sellers at 3 , this is a great opportunity to take a trade to the downside, logically this is the move 5 : I don't like the fact that there is not much visable activity from sellers , but , due to the one sided highly volitile rush up, this usually proceeds with a slower controlled opposing move, supporting the downside. * what do I think will happen ? * we will break the 4 low I suspect, or if not then ossolate in this range of 1-4 * over the past 2,500 bars, if price closed below a zone, it has a 54% chance to reach the next orange zone below. you can manually verify this via reducing the lookback period. this is not a great confluence as its almost a coin flip, but I do like that we can break even after we clear the first orange zone , as a return to this zone up if we break below would surely be bad news for sellers.

Fundamental Analysis Financial Performance Revenue Decline: Q2 revenue fell 2% year-over-year to $15.8 billion. Earnings Drop: Adjusted earnings per share decreased by 7% to $2.13. Key Product Challenges Keytruda Competition: Facing increased competition for its top cancer drug, Keytruda. Patent Cliff: Keytruda’s patent expiration looms in 2028, posing a revenue risk. Growth Highlights Winrevair Success: New pulmonary arterial hypertension drug generated $336 million in sales post-approval last year, with blockbuster potential. Animal Health Segment: Sales rose 11% year-over-year to $1.6 billion, showcasing strength in a leading segment. Pipeline and Innovation Subcutaneous Keytruda: Aced phase 3 studies, extending patent protection. Pipeline Expansion: Enhanced through licensing agreements, including promising cancer and weight loss therapies. Innovation Potential: Likely to develop new therapies to offset Keytruda revenue risks. Dividend Profile Forward Yield: Offers a 4.1% forward dividend yield. Dividend Growth: Increased dividends by 39% over the past five years. Investment Appeal: Remains attractive for dividend-seeking investors. Technical Analysis The stock price has fallen by over 45% from its ATH of $134.63 in June 2024. The price seems to be consolidating within the range of $74-$86 from April 2025. Moreover, the consolidation seems to be coinciding with the trendline support and 0.618 retracement level at $78.35 of the price rise from $43.57 in August 2015 to $134.63 in June 2024. Further, the daily RSI is just above 60, indicating that a rebound may be near the corner. Entry: Above $86 Targets: $94.92, $99.84, and $102.48. Stop Loss: $78.35-$77.

Pharma has been struggling with Trump's tariff threats. This one is orbiting a Double Golden zone at $80.36-80.74 Looking for a clean Break-n-Retest for possible long entries.