Oversold shares of Merck (MRK) could get a boost.
For one, the stock is technically oversold at triple bottom support, dating back to June 2020. It’s also over-extended on RSI, MACD, and Williams’ %R. From here, we’d like to see a near-term test of prior resistance at $84.
The other key catalyst is news Joe Biden is expected to announce that Merck will help make Johnson & Johnson COVID-19 vaccine, as noted by CNBC.
“The decision comes as the administration works to ramp up production of J&J’s single-shot vaccine. Senior administration officials said Sunday the U.S. government would ship J&J’s entire inventory of 3.9 million doses this week, adding that supply would be “uneven” in the following weeks. Some 16 million more doses are expected by the end of the month.”