8:00 EST The Merck (MRK) trade yesterday was the exact reason you need a very specific price point to look for a purchase. I was looking for a breakout above $28.20. The high for the day was $28.05. If you had an itchy trigger finger and bought a little above $28 or $27.95, you would have suffered with the position all day. The action overall was generally bullish near the end of the day, but it would have had you wondering about your trade all day if you bought too early. I am still keeping an eye on (MRK) today. I think it may stage the breakout I was looking for today.
Remember the General Mills (GIS) trade from June 8th? The stock never broke below the low of the day on June 8th. As I said, the time to make the decision is now that the earnings have been announced. I would look for resistance at the 200 day moving average to be the time to take some profits. While the stock can certainly break above the 200 day, it will probably have a difficult time. Take some risk off the table there and let the rest run. Until next time, stay low risk..
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