Date: 17/02/2017
Tool: MRK.DE Merck Kommanditgesellschaft auf Aktien
Uptrend, short-term consolidation and price adjustment to levels of horizontal and diagonal support coinciding with 23.6% Fibonacci retracement and the 50 SMA.
Price action: pin bar and devouring bar support levels - a positive signal for the price.
Indicators: CCI (50) above zero - this indicates that the price is still in an upward trend; CCI (14) crossed below -100 up - it shows that the price is entering a new bullish momentum.
There are two entrances, aggressive and conservative now in a correction to the 23.6% Fibonacci. The second entrance is recommended as it will give us better positioning and a shorter stop
Foundation: The company is from the healthcare sector which in recent years has grown strongly. Over the past four years the company has a steady growth in sales. EPS of the company is 3.42. The next report earnings that will be presented by the company will be on 9 March 2017. The company has a recommendation for purchase.
SL: 99.40
Alternative scenario: If the price crosses below the horizontal and diagonal levels of support and hold there is likely to see a decline in the share price.
Jr_Trader_P_Milanov
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