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    Analytical review of the stocks of Merck&Co. Inc. of 06.05.2016.

    Merck&Co. Inc., #MRK [NYSE]
    Health care, drugs production, USA

    Financial performance of the company:
    Index – DJIA, S&P 500;
    Beta – 0.69;
    Capitalization – 145.01 В;
    Return on asset – 4.30%;
    Income - 4.44 B;
    Average volume – 11.42 М;
    P/E - 33.28;
    ATR – 0.86.

    Analytical review:

    • The company ranks the fourth on capitalization in the sector of “health care” among the issuers traded in the American stock market;
    • Yesterday the company issued report for Q1 of the fiscal year 2016. It became known that company’s revenue in Q1 was 9.3 billion USD against the forecast of 9.5 billion USD. Net profit of the company increased to 1.12 billion USD from 953 billion USD for the similar period a year ago;
    • At the press-conference company’s management said that financial performance of the company has improved due to the increase in sales of the fast developing brands. Sales of the medication “Januvia” (against diabetes) rose by 2% to 906 million USD. Sales of medication “Zetia” reducing the level of cholesterol in blood) rose by 7.7%;
    • The company has announced revised forecast for fiscal year 2016, which shows that annual net profit will grow to 3.65-3.77 USD per share versus previous expectations on the level 3.60-3.77 USD per share;
    • Over 70% of the company’s shares belong to the institutional funds. Most part of the shares belongs to Wellington Management Company (6.57%) и Vanguard Group (6.05%).

    Summary:

    • Company’s last report has increased investors’ confidence to the company. Despite strong pressure from the USD the company demonstrated growth in net profit. Merck&Co. Inc. has strong growth potential. Revised forecast for 2016 will contribute to the rise in the company’s price.
    • It is likely that in the near future company’s quotes will go up.

    Trading tips for CFD of Merck&Co. Inc.

    Key levels:
    Support levels: 64.15 USD and 61.60 USD.
    Resistance levels: 65.00 USD and 66.50 USD.

    Medium-term trading, Н4:
    At the moment the issuer is traded in the demand zone of 53.40-54.20 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 55.40 USD, 56.80 USD and 58.00 USD with the use of trailing stop.

    Analytical review of the stocks of Merck&Co. Inc. of 06.05.2016.
    Medium-term trading, Н4

    Short-term trading, М15:
    Currently, the issuer is traded between the local support and resistance levels of 53.55 - 54.55 USD. It is recommended to enter the market after breaking out and testing of these levels. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

    Analytical review of the stocks of Merck&Co. Inc. of 06.05.2016.
    Short-term trading, М15

     

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