This morning, it was announced that pharmaceutical giant, Merck & Co (MRK), will help Johnson & Johnson (JNJ) produce their recently approved Covid-19 vaccine. Merck & Co (MRK) stock is trading higher by $0.89 cents to $73.27 a share on the news. Traders should note that Merck & Co (MRK) stock has been in a downtrend since January 11th, 2021. The stock is trading below its important 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and is signaling further downside.
The next major support level for Merck & Co (MRK) stock is around the $67.00 level. This important support area is where the stock broke out to the upside in March 2020. Often, when stocks retest prior breakout levels it will be defended by the institutional crowd. This is a level where I would look to buy Merck stock. Unfortunately, despite today’s news for Merck & Co (MRK) it is still not a buy yet.
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