Swing High Formed In MRK Today

I've been short MRK for a few weeks now and the position was beginning to look like it might get closed out soon as MRK has shown a little bit of strength lately. Well, that strength is more likely just some consolidation after the sell off that it's suffered lately.

Today MRK formed a swing high on the daily chart, which means that it failed to make a higher and and it made a lower low from the previous day's bar. This is a bearish sign and it is a pattern that provides a good entry for shorts because it offers a good risk to reward entry.

Here's the chart:For those looking to enter a short position, this pattern is a good one for it...the first profit target will be the previous lows down around $31 and the stop is placed above the prior day's high at $34.15. I'll be looking to add to my short tomorrow.

TLT