From a technical perspective, Merck (MRK) is looking like an interesting pick, as it just reached a key level of support. MRK recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Shares of MRK have been moving higher over the past four weeks, up 7.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that MRK could be poised for a continued surge.
Once investors consider MRK's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 5 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors may want to watch MRK for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Merck & Co., Inc. (MRK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).