Hi Shoppers,

In my last column I showed you a doji at the top of a nice uptrend in Merck (Ticker: MRK).

It was a good thing I reminded you to wait for the confirmation before hopping into a trade.

Because, sure enough, the doji did not pan out, MRK traded higher.

Here is the chart now:

MRK has traded up against resistance at $95.20 four times now and yesterday created a doji.

I will be watching for MRK to honor this resistance line and trade lower this morning.

I think MRK can trade down to $92.50 and possibly $91.

The earnings announcement is scheduled for Oct. 27, so I would be out of my position before that news.

Thanks for Reading … See You Next Tuesday.

Licia Leslie