They currently sit 15th in League One, but the former Arsenal and England midfielder is still confident his side can push for promotion.
Merson said: "There is still a long way to go but I haven't seen anything at the moment that scares me. It's all about confidence and if someone could put a run together they could well go on to do a 'Luton'.
"To win promotion is hard work, though, and takes plenty of effort and concentration over a long period of time from everyone involved.
"Hopefully we can return to winning ways on Saturday and launch a positive run of results."