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.
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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!
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Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.