Sep 16, 2020, 12:01:14 PM
Johnson&Johnson (JNJ/NYSE): general review
Current trend
Johnson & Johnson shares are experiencing a 1.6% corrective gain from a monthly low. At the moment, the emitter's quotes are traded at a 5.2% discount to the April 52-week high. Johnson & Johnson Spain has begun phase 2 trials of a COVID-19 vaccine. Canada is in talks with the company on a delivery schedule for the vaccine in early 2021.
In the previous week, the stock of Johnson & Johnson grew by 1.11%. S&P500 index went up by 2.11% during the same period.
Support and resistance
The stock of the company is showing an ambiguous technical picture. Currently, the emitter is consolidating. Local support and resistance levels are at 146.50 and 151.00, respectively. In the near future, technical correction after a protracted growth cannot be excluded.
Indicators don't give a clear signal: the price has consolidated between MA(50) and MA(200), and MACD histogram is located near the zero line. Positions are to be opened from key levels.
Comparing the company's multiplier with its competitors in the industry, we can say that #JNJ shares are neutral.
Resistance levels: 151.00, 155.00, 157.00.
Support levels: 146.50, 144.00, 140.00.
Trading tips
If the instrument consolidates above the resistance level of 151.00, one may consider buying the company's stock. Potential profits should be locked in by orders at 155.00, 159.00, and 162.00. Stop-loss – 147.00.
If the price consolidates below 146.50, #JNJ shares may correct. The moving potential is aimed at the area of 140.00–136.00. Stop-loss – 150.50.
Implementation time: 3 days.
Scenario
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Timeframe
Intraday
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Recommendation
BUY STOP
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Entry Point
151.00
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Take Profit
155.00, 159.00, 162.00
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Stop Loss
149.65, 147.00
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Key Levels
140.00, 144.00, 146.50, 151.00, 155.00, 157.00
Alternative scenario
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Timeframe
Intraday
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Recommendation
SELL STOP
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Entry Point
146.45
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Take Profit
140.00, 136.00
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Stop Loss
150.50
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Key Levels
140.00, 144.00, 146.50, 151.00, 155.00, 157.00
