1) Formed a 19-year Cup and 2-year Handle - A bullish Continuation Pattern
2) Price shows massive tightening on the daily with relatively muted selling volume and larger buying volume spikes
3) Spectacular earnings acceleration and strong relative strength compared to the overall broad market
4) The index itself (SPY, QQQ, DIA, etc...) is short term oversold and is probably due for a bounce soon. This should give the stock momentum to go higher.
5) Am long MRK at the breakout pivot @ $89 and SL @ $87.85. Given weak market conditions lately, will get out at a multiple or two of my stop.
Price action yesterday increased my conviction that this setup will work - looking for a period of consolidation to perhaps add on my position, we shall see!