Merck is one of the largest pharmaceutical companies in the world. It has a strong product line-up in cancer, cardiometabolic diseases, pediatric diseases, and vaccinations. Merck has a pipeline of drugs that are slated to arrive in the future, and it has also established a presence in animal health which provides steady growth. Merck, being one of the big pharma companies, has pricing power and scale. Its long-term prospects look bright.
Merck’s long-term monthly chart shows a 10-year long uptrend that made higher tops and higher bottoms till about 2020. The first three months of 2020 saw the price fall by about 30% and temporarily come close to the bottom of the long-term trend. The price recovered by April 2020 and has since found support a few times near the $69.5 level. Most recently, the price had risen to $90 before pulling back and finding support at the bottom of the long-term trend. A reversal is playing out, and a retest of the $90 level is likely. A stop-loss can be placed at $73 below the bottom trend line.
Position entered into our long-term tracking portfolio today. Entry point at $80.44 and stop-loss at $69.10, 14% below the entry point. The short-term to medium take profit at $69.11, giving a potential profit of 12%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.