Market News & Analysis
Merck trades lower after 1Q results – The trend remains bullish
Nicolas Suiffet May 14, 2020 5:28 PM
From a technical perspective, the bearish gap opened this morning calls for a short term consolidation move. However, the trend remains bullish. A pennant pattern is taking shape. (Continuation trend pattern). The daily Relative Strength Index (RSI, 14) is above 50% and is not overbought (<70%).
As long as 95E is support, the bias is bullish. The validation of the pennant pattern would call for a new rise towards 110E and 118.4E.
Alternatively, a break below 95E would negate the bullish view and would call for a reversal down trend with 87.45E as first target.
Source: GAIN Capital, TradingView
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