Johnson & Johnson shares lost 6.2% in value at the end of last week, October 18, renewing the one-month low after reporting traces of asbestos in one of the batch of baby powder following an FDA random test. At the beginning of last week, the company published a strong quarterly report with revenue and profit growth, exceeding market expectations, and also increased its forecast for 2019.
Support and Resistance for JNJ
Shares of the company went down and renewed the local lows. The issuer approached the key support level of 127.00. The level of 130.50 is the nearest resistance. There is potential for further decline. Indicators signal the strength of sellers: the price has fixed below MA (50) and MA (200); The MACD histogram has begun to decline. 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, 137.25.
Support levels: 127.00, 125.00, 122.00.
Trading Tips JNJ
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 124.00, 121.00 and 119.00. Stop loss – 130.00.
Long positions can be opened after the price consolidates above the level of 130.50 with the targets at 136.00–138.00. Stop loss – 127.50.
Implementation period: 3 days.
Pivots For JNJ
Technical Indicators for JNJ
|Exponential Moving Average (5)||128.97||Sell|
|Simple Moving Average (5)||128.67||Sell|
|Exponential Moving Average (10)||130.67||Sell|
|Simple Moving Average (10)||131.47||Sell|
|Exponential Moving Average (20)||132.18||Sell|
|Simple Moving Average (20)||133.86||Sell|
|Exponential Moving Average (30)||132.54||Sell|
|Simple Moving Average (30)||133.58||Sell|
|Exponential Moving Average (50)||132.52||Sell|
|Simple Moving Average (50)||132.38||Sell|
|Exponential Moving Average (100)||132.04||Sell|
|Simple Moving Average (100)||131.99||Sell|
|Exponential Moving Average (200)||131.47||Sell|
|Simple Moving Average (200)||131.18||Sell|
|Ichimoku Cloud Base Line (9, 26, 52, 26)||132.60||Neutral|
|Volume Weighted Moving Average (20)||132.02||Sell|
|Hull Moving Average (9)||127.08||Buy|
Johnson & Johnson, together with its subsidiaries, carries out research and development of various products in the field of healthcare worldwide. It operates in three sections: Consumer, Pharmaceutical and Medical Devices. The Consumer segment offers child care products under the JOHNSON brand; oral care products under the LISTERINE brand; beauty products under the AVEENO, CLEAN & CLEAR, DABAO, Adult JOHNSON, LE PETITE MARKETS, NEUTROGENA, and OGX brands; OTC medicines, including acetaminophen products under the TYLENOL brand; cold products, flu, and allergy under the SUDAFED brand; allergy products under BENADRYL and ZYRTEC brands; ibuprofen products under MOTRIN IB brand; and acid reflux products under the PEPCID brand. This segment provides women’s health products such as sanitary pads and tampons under the STAYFREE, CAREFREE, and o.b. brands; wound care products containing adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. The Pharmaceutical segment provides products in various therapeutic areas, including immunology, infectious diseases, neurology, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases. The Medical Devices item provides orthopedic products; general surgery, biochemical products, endomechanical and energy; electrophysiological products for the treatment of cardiovascular diseases; sterilization and disinfection products to reduce surgical infection; diabetes care products; and video care products, such as disposable contact lenses and ophthalmic products related to laser and cataract refractive surgery. The company markets its products to the general public, and retail outlets and distributors, and distributes it directly to wholesalers, hospitals, and health care professionals for the use of recipes. He has a research and collaboration alliance with Morphic Therapeutic. The company was incorporated in 1887 and is located in New Brunswick, New Jersey.