Merus N.V. CS (MRUS) Support Will See Support at $18.23

Watching some trend signals on shares of Merus N.V. CS (MRUS), we can see that the trendspotter opinion is presently “Sell”. This signal uses a system combining volatility, momentum, and wave theory to help identify the general trend. The trendspotter strength signal is currently Minimum. This signal is compared to the historical performance where maximum would be considered the strongest, and minimum would be touted as the weakest. In terms of direction, the trendspotter signal is currently Strengthening. This signal may indicate if the Buy or Sell is weakening or gaining strength, or if the Hold is leaning towards a Buy or Sell.

Many technical traders will be taking a look at different indicators to help figure out where shares may be heading. At the time of writing, Merus N.V. CS (MRUS) has a 14-day Commodity Channel Index (CCI) of 11.88. Although the indicator uses the term commodity, CCI can be translated to use on other investment tools such as stocks. The CCI was developed to typically stay within the -100 to +100 levels. Traders may employ the indicator to determine stock trends or to identify if a stock is trading in overbought/oversold territory. A CCI reading above +100 would imply that the stock is overbought and possibly set for a correction. On the other side, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, Merus N.V. CS (MRUS) has a 200-day MA of 17.05, and a 50-day of 18.01. Presently, the stock has a 14-day RSI of 49.68, the 7-day is sitting at 50.77, and the 3-day is resting at 54.87. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.

Investors often focus in on stock price resistance and support levels. The support is simply a level where shares may see a bounce after it has dropped. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it reaches a certain level of resistance. After a recent check, the stock’s first resistance level is 18.23, and the second resistance level is 18.41. On the other side, investors are watching the first support level of 17.89, and the second support level of 17.73.

Merus N.V. CS (MRUS)’s Williams Percent Range or 14 day Williams %R presently is at -47.98. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 9.58. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.

Lastly will look at the Bollinger Band signal, specifically the 20 day reading.  This indicator can be used to identify short-term overbought and oversold zones, to confirm divergences between prices and indicators and to predict future price targets.  The 20-Day Bollinger Band currently is signaling a “Hold” for Merus N.V. CS (MRUS).  Bollinger Bands are among the most popular and powerful of the many indicators that traders can choose from.  As the name implies, Bollinger Bands are price channels that are plotted above and below price. The outer bands are based on volatility in price, which means that they expand when price fluctuates and trends strongly, and the Bands contract during sideways consolidations and low momentum trends.