Overbought Readings Warn of MRK Pullback at $106.78

Merck & Co Inc (MRK) closed up 0.31% at $106.78 on December 27.

Technical indicators paint a bullish picture:

• Moving Averages: Price trades above the 9-day EMA ($103.44) with a bullish stack. The 21-day EMA at $100.59 provides support.
• Momentum: RSI at 71.6 is in overbought territory, suggesting potential near-term exhaustion. MACD is bullish (2.71 vs signal 2.33).
• Volatility: Bollinger Band width at 11.2% indicates normal volatility.

While the trend remains bullish, elevated RSI warrants caution for new entries at current levels.

Key levels to watch: Support at $95.57, Resistance at $106.92.