Analyst Observations | Nasdaq Dorsey Wright

Comments include: MRK, SPHR, & UNH.

MRK Merck & Co., Inc. ($144.52) - Drugs - Shares of MRK broke a double bottom at $144, ending its streak of three consecutive buy signals. That said, the 5 for 5'er continues to trades in a positive trend and exhibit relative strength, keeping it firmly in buy territory. From here, initial support lies at $128 then $122, while previous resistance at $134 could serve as support as well.

SPHR Sphere Entertainment Co. ($142.49) - Leisure - SPHR reversed into Xs and broke a double top at $146 to return to a buy signal after testing support in the mid $130s. Action at the end of August saw the stock reverse down into Os on its market RS chart, dropping SPHR down to a 4 for 5'er in TA rating. From here, note the August chart highs at $180, while support beyond the mid $130s resides in the mid $120 to $130 range.

UNH UnitedHealth Group Incorporated ($376.65) - Healthcare - Shares of UNH fell on Friday, completing a second consecutive sell signal with a double bottom break at $376. That said, the 4 for 5'er has rebounded sharply off its lows over the last several month, with it still trading in a positive trend. Investors could buy here with it trading in actionable territory, but should monitor for further deterioration.

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