Johnson & Johnson shares are trading at a premium of 4.5% to the December 52-week low, continuing to reflect a downtrend since mid-July. The company offers investors quarterly dividends in the amount of $0.95, which corresponds to a dividend yield of 2.96% – by 2.84% higher than large pharmaceutical companies, and also by 1.96% higher than the S&P 500 offer.
Over the past week, Johnson&Johnson shares rose 0.49%. Over the same period, the S&P 500 index grew by 2.80%.
Short positions can be opened after the price consolidates below the level of 127.00. The closing of the profitable positions is possible at the levels of 124.50, 122.00 and 120.00. Stop loss is 129.50.
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Long positions can be opened after the price consolidates above the level of 130.50 with the targets at 135.00–137.00. Stop loss is 128.00.
Implementation period: 3 days.
|Take Profit||124.50, 122.00, 120.00|
|Stop Loss||127.85, 129.50|
|Key Levels||122.50, 125.00, 127.00, 130.50, 134.00, 136.50|
|Take Profit||135.00, 137.00|
|Key Levels||122.50, 125.00, 127.00, 130.50, 134.00, 136.50|
Support and resistance
The technical picture in #JNJ is still ambiguous. The company’s shares continue to consolidate. There is no unidirectional trend observed. At the moment, the key range is 127.00–130.50. There is potential for further decline. Indicators do not give accurate signals: the price has fixed below MA (50) and MA (200); the MACD histogram is near the zero line. It is better to open the positions from the key levels.
A comparative analysis of the multiples of the company and competing companies in the industry indicates the neutrality of #JNJ.
Resistance levels: 130.50, 134.00, 136.50.
Support levels: 127.00, 125.00, 122.50.
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