Stock Picks: MER on a possible Bump and Run Pattern

Figure 1: MER Price Chart

Looking at the chart of MER we have two possible scenarios to happen. 

The first scenario is we have a possible bullish AB = CD pattern whose downward target is the PRZ area around P223. If and only if the price of MER reverses along this area then a have a valid confirmation of the pattern whose possible target will be the TP1 = P252.50 and TP2=P281.80.

The second scenario is we have a possible bump and run pattern. The lead-in support line of MER will also be broken upon failure by the AB = CD pattern to reverse in the PRZ

What is more concerning is the momentum is getting stronger to the downside direction. Based on last Fridays closing, MER's momentum signaled a warning for a price breakdown. RSI already signaled an early breakdown of its trendline. I don't recommend MER as a buy for now but we will keep on eye for the possibilities of a price reversal.