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Downtrend Broken Resistance

Downtrend Broken Resistance stock alert presents a technical analysis stock market picking technique based on combination of technical indicators, stock trend analysis, trend following indicators and pattern recognition. Downtrend broken resistance stock market alert is a trend trading warning signal. It is a confirmation that long term downtrend reversal is completed and a new uptrend is establiched.

Unlike other alerts, broken resistance is not a buy/sell signal. It is rather warning signal that trend direction has changed. For entry point it is usually better to wait for pull back and retest of resistance line. This point is considered as a second chance to participate in downtrend reversal.

Downtrend Broken Resist.

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- 10/3/2025 -
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Merck & Co. (MRK) Technical Analysis

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Summary:
Weekly :Overbought sectorWilliams' Percentage Range is strongly overboughtBroken trend resistance line
Daily :Williams' Percentage Range is overboughtStochastic signal line moved above oversold areaDaily  MACD line has moved above its signal lineThe price has risen above the Parabolic SARPrice has crossed above the 50 Day Moving AverageThe price moved above the moving average in the center of the Bollinger Bands
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It was a first positive week after 3 consecutive negative weeks for the Merck & Co. (MRK). During the week, the MRK gained 10.63 points, or 13.53%, and closed at 89.19 on Friday, October 3, 2025. Weekly volume was 39% above average.

MRK is a member of Health Care Sector. Health Care is the second most overbought sector. Sector/industry rotation is considered a proven strategy to beat the market. Use the following links to find overbought/oversold technical indicators by Sector or by Industry.

Long-term trend: [See MRK long-term trend chart]
A long-term downtrend had started on June 25, 2024 at 134.63 and reached 73.31 on May 15, 2025. MRK lost 61.32 points, or 45.55%, in 46 weeks. The chart has formed a Symmetric Triangle chart pattern. The downtrend resistance line (77.86) is broken. Usually a broken resistance is considered to be a long-term bullish signal, but since daily indicators are overbought a short-term pull back is possible. MRK may retest the broken resistance line. It is considered to be a support line now. Use the following links to access Trend Support/Resistance Help, or use the Technical Stock Screener to see the list of stocks with broken trend resistance line in a long-term trend.

Medium-term trend: [See MRK medium-term trend chart]
A medium-term uptrend had started on May 15, 2025 at 73.31 and reached 91.00 on October 2, 2025. MRK gained -17.69 points, or -24.13%, in 20 weeks. The chart has formed a Broadening Ascending Wedge chart pattern. The trend support level is at 78.23 and resistance is at 91.63. A Broadening Ascending Wedge pattern is considered to be a reversal formation. It usually appears in a mature trend, characterized by overbought/oversold long-term and short-term indicators, and often generates divergence on long-term indicators. Use the following link to access a Broadening Ascending Wedge chart pattern help, or use a Technical Stock Screener to see the list of stocks with Broadening Ascending Wedge pattern in a medium-term trend.

Weekly Technical Indicators: [See MRK weekly technical indicators chart]
Weekly Williams' Percentage Range is strongly overbought. Use the Technical Stock Screener to see the list of stocks with strongly overbought weekly overbought Williams' Percentage Range. Oscillators are designed to signal a possible trend reversal. They can act as alerts and should be taken in conjunction with other technical analysis tools. Oscillators can be used to confirm other technical signals. Use the following link to access Williams' Percentage Range help.

The weekly MACD line is above its signal line since June 6, 2025. This is an indication that the medium-term trend is up. Use the following link to access a MACD help.

Short-term trend: [See MRK short-term trend chart]
A short-term uptrend had started on September 25, 2025 at 77.58 and reached 91.00 on October 2, 2025. MRK gained -13.42 points, or -17.30%, in 7 days. The price is now at the 13.49% retracement level.

Daily Technical Indicators: [See MRK daily technical indicators chart]
Daily Williams' Percentage Range is overbought. Use the Technical Stock Screener to see the list of stocks with overbought daily Williams' Percentage Range. During the last week, daily Lane's Stochastic signal line (%D) has moved above oversold area. Such crossover is considered a bullish signal. Use the following link to access Lane's Stochastic help.

During the last week, daily MACD line has moved above its signal line. Such crossover is considered a bullish signal.

During the last week, the price has risen above the Parabolic SAR (stop and reversal). A Parabolic SAR below the price is a bullish signal, and it indicates that momentum is likely to remain in the upward direction. A Parabolic SAR is used as a trailing stop loss for long or short positions. It works best during strong trending periods. Use the following links to access Parabolic SAR Help, or use the Technical Stock Screener to see the list of stocks with the Parabolic SAR close to the price level.

During the last week, the price has moved above the moving average in the center of the Bollinger Bands. The Bollinger Bands are often used with a non-oscillator indicator like chart patterns or a trendline. The signals are considered more reliable if these indicators confirm the recommendation of the Bollinger Bands. Use the following links to access the Bollinger Bands Help, or use the Technical Stock Screener to see the list of stocks with the price above the Upper Bollinger Band or below the Lower Bollinger Band.

During the last week, the price has advanced above the 50 Day Moving Average. Such crossover is considered a bullish signal. The moving average crossover signals work better when the stock develops a strong trend, but they are ineffective when the stock is in a trading range. Moving average crossover systems can be effective, but should be used in conjunction with trend patterns, momentum indicators, candlesticks and other aspects of technical analysis. Use the following links to access Moving Average Crossover trading technique, or use the Technical Stock Screener to see the list of stocks with the Moving Average close to the price level.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 72.81
Williams' Percentage Range (W%R) 10.20
Overbought
Lane's Stochastic (%D-Slow) 78.07
Greed/Fear Indicator (GFI) 80.21
Overbought
Moving Average Converg./Diverg. (MACD) -0.13
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 60.84
Williams' Percentage Range (W%R) 7.80
Strong Overbought
Lane's Stochastic (%D-Slow) 54.39
Greed/Fear Indicator (GFI) 66.84
Moving Average Converg./Diverg. (MACD) -2.66
Trading Signals
Description Value Chart
Quarterly Trendline Resistance 91.63
Upper Bollinger Band 90.58
Daily Stochastic Crossing 89.98
Price 89.19
Weekly Stochastic Crossing 84.35
Yearly Trendline Resistance 83.17
50 Day Moving Average 82.87
20 Day Moving Average 82.73
Parabolic System 79.54
Quarterly Trendline Support 78.23
Yearly Trendline Support 77.86
Lower Bollinger Band 76.40
Sector and Industry
Description Name Rank
Sector Health Care 8
Industry Pharmaceuticals 66
Daily Trend
Description Value
Direction Up
Chart Pattern Uptrend
Low 77.58
Low Date 09/25/2025
High 91.00
High Date 10/02/2025
Weekly Trend
Monthly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 77.58
Low Date 09/25/2025
High 91.00
High Date 10/02/2025
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 77.58
Low Date 09/25/2025
High 91.00
High Date 10/02/2025
Quarterly Trend
Yearly Trend
Description Value
Direction Up
Chart Pattern Broadening Ascending Wedge
Status Valid
Resistance 91.63
Support 78.23
Low 73.31
Low Date 05/15/2025
High 91.00
High Date 10/02/2025
Description Value
Direction Down
Chart Pattern Symmetric Triangle
Status Broken Resistance
Resistance 83.17
Support 77.86
High 134.63
High Date 06/25/2024
Low 73.31
Low Date 05/15/2025
Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.