Johnson&Johnson (JNJ/NYSE): general review
20 December 2018, 13:20
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 126.95 |
| Take Profit | 123.00, 120.00, 117.00 |
| Stop Loss | 130.85, 131.00 |
| Key Levels | 121.50, 124.00, 127.00, 133.00, 136.00, 138.00 |
Current trend
Johnson & Johnson shares fell by 10% on December 14 amid a Reuters report that the company’s management had known about asbestos in Johnson’s baby powder for decades and withheld this data in litigation. Since the beginning of the week, the emitter's quotes continued to fall, capitalization decreased by USD 50 billion. The company's management announced a USD 5 billion share buy-back program.
In the previous week, the stock of Johnson & Johnson dropped by 13.25%. S&P500 dropped by 5.44% within the same period.
Support and resistance
The stock of the company is dominated by aggressive sales. The emitter has updated key extremes. Currently, the quotes of #JNJ are testing the local support level of 127.00. 133.00 is a "mirror" resistance level. The instrument has the potential to further decline.
Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200); MACD histogram is in the negative zone. Positions are better to be opened in line with the current trend.
Comparing company's multiplier with its competitors in the industry, we can say that #JNJ shares are neutral.
Support levels: 127.00, 124.00, 121.50.
Resistance levels: 133.00, 136.00, 138.00.
Trading tips
If the price consolidates below the support level of 127.00, company's shares may decline. Potential profits should be locked in by orders at 123.00, 120.00, and 117.00. Stop loss – 131.00.
A trailing stop is to be used for positions.
Implementation period: 3 days.
Johnson & Johnson shares fell by 10% on December 14 amid a Reuters report that the company’s management had known about asbestos in Johnson’s baby powder for decades and withheld this data in litigation. Since the beginning of the week, the emitter's quotes continued to fall, capitalization decreased by USD 50 billion. The company's management announced a USD 5 billion share buy-back program.
In the previous week, the stock of Johnson & Johnson dropped by 13.25%. S&P500 dropped by 5.44% within the same period.
Support and resistance
The stock of the company is dominated by aggressive sales. The emitter has updated key extremes. Currently, the quotes of #JNJ are testing the local support level of 127.00. 133.00 is a "mirror" resistance level. The instrument has the potential to further decline.
Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200); MACD histogram is in the negative zone. Positions are better to be opened in line with the current trend.
Comparing company's multiplier with its competitors in the industry, we can say that #JNJ shares are neutral.
Support levels: 127.00, 124.00, 121.50.
Resistance levels: 133.00, 136.00, 138.00.
Trading tips
If the price consolidates below the support level of 127.00, company's shares may decline. Potential profits should be locked in by orders at 123.00, 120.00, and 117.00. Stop loss – 131.00.
A trailing stop is to be used for positions.
Implementation period: 3 days.
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