Hurry Up and Wait

I'm stalking a possible secondary entry to a trade setup that I have identified in Merck (MRK). Let's start by taking a look at the original setup. There was what I call a Fibonacci price cluster at the $45.50-$45.97 area. This original zone included the coincidence of at least six Fibonacci price relationships. One of the most important price relationships within this cluster zone was the 100% projection of the prior decline into the May 1 low, which was at $4.19. The second decline into the July 2 low was $4.13 -- which was very similar! When comparing swings in the same direction, this is what I call "symmetry."

We have already seen a nice rally off the original support cluster, and if this last low is more important, then buying a pullback to this last low should be a good strategy. With that being said, however, I only want to buy this pullback if the new support holds and I also see a purchase trigger fire off. I do see that there was a downgrade of this stock. Sometimes, however, these provide opportunities....162 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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