On the penultimate trading day of the year 2010, many stock issues have been going up, with MER among the best performer, seemingly breaking out from a bullish inverted head and shoulders neckline of 207. MER also closed at its high of 221, up by 7.3%.
After establishing lows of 186 and 188 for the shoulders, and going as low as 170 for the head, MER's price action on this morning trading session has finally allowed it break free from the key resistance line of 207. The two-month price target for MER, according to the area pattern, is at the 245 levels.
Stops could be placed below the 195 support area.
With this, the next immediate price target for MER is around the 225 area, before attempting to take out the more significant resistance line at around the 236 area. If MER also manages to break this resistance in the future, are we seeing a retest of the 300 price level? We shall see.
Indeed we shall see where MER can go further. With the news that they are venturing to power generation there stock price might follow what happened to SCC when they started generating power.
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