Merck Moves to the Upside

Merck (MRK), a large pharmaceutical company, broke above its long-term downside trendline and has moved to the price upside. A four percent dividend yield makes MRK an attractive candidate for a long-term dividend reinvestment portfolio. However, Merck still faces lengthly litigation from the thousands of lawsuits over its VIOXX drug.

A close-up chart shows the upside move after making a double bottom. The stock has resistance at $44.

Posted July 13, 2006.