Candlesticks – Bears Appeared on Merck

By Traders Huddle Staff Shares of Merck MRK ended the trading session yesterday lower by $0.22 or -0.56% from its previous close after the pharma giant posted better than expected earnings on revenues that missed estimates. The company also issued inline guidance for fiscal 2012. Merck's price action formed what is considered to be a bearish engulfing candlestick chart pattern. The stock's current stock range is defined by calculated support defined at $33.13 and by the resistance level at $39, which should be used by traders planning their moves. Traders wanting to establish a position in Merck or traders that are already holding the stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current price action. The Bearish engulfing pattern is a leading warning sign for a trend reversal to occur. Merck & Co., Inc. is a global pharmaceutical company that develops, manufactures, and markets a broad range of human and animal health products. Merck's products include Zocor for treatment of elevated cholesterol, Propecia for treatment for male pattern hair loss, Fosamax for preventive treatment of osteoporosis, and Singulair for treatment of asthma. Merck was founded in 1891 and is headquartered in Whitehouse Station, New Jersey. The Bearish Engulfing candlestick pattern is one of the clearest reversal signals in candlestick chart analysis. For a comprehensive list of stocks that have demonstrated this formation, please visit Technical Scans Candlesticks Bearish Engulfing.