Here is your Bonus Idea with links to the full Top Ten.
Merck (MRK)
Merck is trying to move higher out of a bull flag on its next leg higher out of a Cup and Handle with a target of 55. The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence (MACD) is rising, both supporting more upside price movement. There is resistance at 48.67 and then 53 from 57.50 and 62.30, the last three all prior to 2001. Support lower is found at 46.50 and 45.60 followed by 45, 44.50 and 43.50.
- Trade Idea 1: Buy the stock on a move over 47.50 with a stop at 46.50.
- Trade Idea 2: Buy the May 48 Calls (offered at 63 cents late Friday) on a move over 47.50.
- Trade Idea 3: Sell the May 46 Puts (37 cents) on a move over 47.50.
- Trade Idea 4: Buy the May 46/48 bullish Risk Reversal (26 cents) on a move over 47.50.
- Trade Idea 5: Buy the June 46/48 bullish Risk Reversal (10 cents) on a move over 47.50.
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