Merck (MRK) is setting up for what could be a high-probability breakout. The stock has been in a falling wedge pattern for several months — a classic technical formation that often precedes sharp upside moves. Price action has now compressed to the end of the wedge, and we may be on the brink of a bullish resolution.
🔍 Technical Setup
Falling Wedge Pattern nearing completion
Price currently hovering near long-term support ($78.25)
Strong bullish divergence forming on momentum indicators (RSI/MACD)
The falling wedge is typically a reversal pattern, and given how deep MRK has pulled back from its highs ($134+), the risk/reward here looks compelling.
🔥 Options Flow
Today’s options market added fuel to the fire:
48,000 call contracts traded expiring this Friday
This sudden surge in short-dated call buying signals aggressive positioning for an imminent move
This kind of volume is not retail-driven — it points to potential institutional interest
💡 The Bullish Case
With the technical breakout structure in place and strong confirmation from options flow, the case for a bullish reversal is growing. If MRK can close above wedge resistance with volume, it opens the door to a quick move toward $85+, possibly even higher in the coming weeks.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
🔍 Technical Setup
Falling Wedge Pattern nearing completion
Price currently hovering near long-term support ($78.25)
Strong bullish divergence forming on momentum indicators (RSI/MACD)
The falling wedge is typically a reversal pattern, and given how deep MRK has pulled back from its highs ($134+), the risk/reward here looks compelling.
🔥 Options Flow
Today’s options market added fuel to the fire:
48,000 call contracts traded expiring this Friday
This sudden surge in short-dated call buying signals aggressive positioning for an imminent move
This kind of volume is not retail-driven — it points to potential institutional interest
💡 The Bullish Case
With the technical breakout structure in place and strong confirmation from options flow, the case for a bullish reversal is growing. If MRK can close above wedge resistance with volume, it opens the door to a quick move toward $85+, possibly even higher in the coming weeks.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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Disclaimer
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Private SIGNALS patreon.com/PremiumOptionsSignals
Trading COURSE bit.ly/tradex
RESULTS bit.ly/TG10x
TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
BUY-SELL INDICATORS tradingindicators.store/
Trading COURSE bit.ly/tradex
RESULTS bit.ly/TG10x
TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
BUY-SELL INDICATORS tradingindicators.store/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.