MRK – Technical Breakout Watch After Major Long-Term Call Buying

There’s been notable long-dated call flow in MRK — including a $7.7M sweep in the April 2026 $90 calls — signaling institutional positioning for a long-term recovery. That’s what caught my attention and led me to take a small long position on 11/11/25.

source: blackboxstocks.com

The Technical Picture

On the weekly chart, MRK is emerging from a year-long downtrend that began near $135 in 2023. After bottoming around $73, the stock has spent months consolidating below resistance and is now showing the first signs of a trend reversal. The MACD has turned positive, and price has reclaimed the 50-week moving average, which hasn’t happened since early 2024.

The Volume Profile shows a clear high-volume node around $82–85, suggesting strong accumulation and a potential new base forming. Above this zone, the next major resistance levels sit around $109, $119, and $135.

On the Daily Chart

MRK has pushed decisively above the 50-day and 200-day moving averages, closing near $91.70 on strong volume. The MACD crossover and momentum confirm improving trend strength. The next near-term resistance sits around $97–98, with support near $85.

If price holds above $85 in coming sessions, a move toward $100 looks achievable, particularly with the longer-term flow suggesting accumulation rather than short-term speculation.

The Trade

I initiated a starter long on November 11th following the breakout above the 200-day. This is a technical position aligned with large institutional flow, looking for continued strength toward the $100–110 range. My risk level is defined below $85 — the top of the prior consolidation zone.

Disclaimer: This post is for informational and educational purposes only. Nothing here should be considered financial advice or a recommendation to buy or sell any security. Always do your own research and trade based on your own risk tolerance and strategy.