Manufacturer of pharmaceuticals, Merck, has completed the corrective part of an Elliot wave cycle which saw stock price decline 52% in a 3-month period with wave 5 marking a 52-week low. Coinciding with the 50-day moving average, impulse wave A has found resistance at the 23.6% Fibonacci extension level; a sell signal indicated by a crossover of overbought stochastics may see the beginning of a corrective wave B before price action resumes an uptrend as part of wave C. Earnings announcement expected 21 April 2008.
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