Johnson & Johnson (JNJ/NYSE): general review
21 May 2018, 10:44
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 125.55 |
| Take Profit | 127.00, 128.50, 130.00 |
| Stop Loss | 124.00 |
| Key Levels | 121.00, 123.00, 125.50, 129.00, 132.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 122.90 |
| Take Profit | 120.00, 119.00 |
| Stop Loss | 124.50 |
| Key Levels | 121.00, 123.00, 125.50, 129.00, 132.00 |
Current trend
Johnson & Johnson is relaunching the Johnson's Baby product line. Since 2011, sales of childcare products have fallen by 20% to USD 1.9 billion in 2017. At the same time, the revenue of this segment in the US in Q1 2018 decreased by 14% compared to last year's figure. New products are designed with a bias for the use of natural ingredients.
During the previous week Johnson & Johnson shares decreased by 2.36%. S&P 500 index went up by 0.51% during the same period.
Support and resistance
There is a classic reversal formation in the issuer — divergence of price and MACD indicator, for quite a long time. Technical correction is possible in the near future. At the moment, the #JNJ shares are consolidating. Indicators don't give a clear signal: the price consolidated below 50(MA) and 200(MA), and MACD histogram is close to the zero mark. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #JNJ shares are neutral.
Support levels: 123.00, 121.00.
Resistance levels: 125.50, 129.00, 132.00.
Trading tips
If the price consolidates below the resistance level of 125.50, corrective movement is expected. Potential profits should be locked in by orders at 127.00, 128.50 and 130.00. Stop-loss will be placed at the level of 124.00.
If the price consolidates below the support level of 123.00, one may consider selling #JNJ. The movement potential is aimed in the area of 120.00–119.00. Stop-loss should be placed at 124.50.
Implementation period: 3 days.
Johnson & Johnson is relaunching the Johnson's Baby product line. Since 2011, sales of childcare products have fallen by 20% to USD 1.9 billion in 2017. At the same time, the revenue of this segment in the US in Q1 2018 decreased by 14% compared to last year's figure. New products are designed with a bias for the use of natural ingredients.
During the previous week Johnson & Johnson shares decreased by 2.36%. S&P 500 index went up by 0.51% during the same period.
Support and resistance
There is a classic reversal formation in the issuer — divergence of price and MACD indicator, for quite a long time. Technical correction is possible in the near future. At the moment, the #JNJ shares are consolidating. Indicators don't give a clear signal: the price consolidated below 50(MA) and 200(MA), and MACD histogram is close to the zero mark. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #JNJ shares are neutral.
Support levels: 123.00, 121.00.
Resistance levels: 125.50, 129.00, 132.00.
Trading tips
If the price consolidates below the resistance level of 125.50, corrective movement is expected. Potential profits should be locked in by orders at 127.00, 128.50 and 130.00. Stop-loss will be placed at the level of 124.00.
If the price consolidates below the support level of 123.00, one may consider selling #JNJ. The movement potential is aimed in the area of 120.00–119.00. Stop-loss should be placed at 124.50.
Implementation period: 3 days.
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