Merck & Co., Inc. (MRK)

Shares of Merck & Co., Inc. (MRK) jumped more than 8% as a federal judge dismissed a class-action lawsuit over the company's pain reliever Vioxx.

After an almost 6-month trading range, the stock gapped up outside the range.

Interesting also the weekly chart. The sideways move close to resistance identified by the long down CANDLE printed back in October 2004 has finally been overcome.

On the daily level, you can either trade the gap closure which is always tempting, although risky or wait a pullback to spot a lower risk entry to the long side.