Shares of Merck & Co. (MRK) have been consolidating this past month and a relatively tight rectangle pattern has formed.
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiovascular disease, asthma, cancer, and infections.
The company announced earnings this morning and beat Wall Street expectations. Merck & Co. (MRK) reported adjusted EPS of $1.37 versus an expected $1.04, and $10.87 billion versus an expected $10.39 billion. The pandemic cost MRK $1.6 billion in lost revenue, but it was offset by strong sales of its cancer drug Keytruda. The company raised its guidance for the rest of the year.
Take a look at the 1-year chart of MRK below with added notations:
During the past month or two, MRK has moved into a sideways trading range. While in the range, the stock has formed a key resistance at $80 (red), and a key level of support around $76 (green). At some point, the stock will have to break either the $80 level or the $76 mark.