Company Description: Merck & Co., Inc., a global health care company, discovers, develops, manufactures, and markets medicines, vaccines, biologic therapies, and consumer and animal products. The company’s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular diseases, diabetes and obesity, infectious diseases, hypertension and/or heart failure, urology, bronchospasm, neurosciences and ophthalmology, oncology, and women’s health; and human health vaccines, including preventative pediatric, adolescent, and adult vaccines against measles, mumps, rubella, and varicella. Merck & Co.’s Animal Health segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fishes. The company’s Consumer Health Care segment provides over-the-counter products, including antihistamines, products for constipation, cold/flu medicines, nasal decongestant sprays, and laxative tablets; foot care products, which comprise topical antifungal products, and foot and sneaker odor/wetness products; and sun care products, such as sun care lotions, sprays, dry oils, and lip-protection products, as well as sunless tanning and sunburn relief products. It sells consumer health care products through wholesale and retail drug, food chain, and mass merchandiser outlets in the United States and Canada. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, and animal producers, as well as managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Our Analysis: The shares of Merck & Co. 'MRK' closed below several support levels yesterday on heavier than normal trading volume. This is a bearish trading signal. The shares of 'MRK' should continue to move lower and test our lower price target of $33.73/share, a former point of upside resistance that was established on October 19th of last year and has now become downside support. If the shares of 'MRK' close below that level, then they should continue to move lower and test $30.67/share, the point from which they gapped higher on the open of trading on November 4th of last year. I see upside resistance on the shares of 'MRK' @ $36.20/share, and have set my stops accordingly @ $36.63/share.