Saturday, February 24, 2007

SHORT Watch MER

I am looking into a short on MER upon a break of the 42.5 level. Big pharma has basically been dead money since the beginning of the year and if you look back over time since its inception. The stock itself is facing a break in strong support at 42.8-42.40 and decreasing indicators. The RSI is falling towards 30 with Accum/Dist not far behind descending towards midrange from highs. The Aroon oscillator is below -50 signaling a weak trend with the MA's looking to turn negative signaling weakening momentum. The stock looks weak here and as I said earlier it is a strong short sale candidate.