Johnson & Johnson Analysis | UpdatedIn this case of Johnson & Johnson (JNJ) stock, it is at a sensitive point where support from a descending channel on the daily chart is being challenged. This level can be a turning point for the stock and if the level holds, then there is a possibility of the stock rising to the $155 – $157 range as shown by the potential target. There are some technical indicators which show that the downtrend is weakening and there is a possibility of the prices turning around in the near future as the MACD depicts a bullish divergence while the RSI shows that the prices are in the oversold region.
Also, volume will be a major tool in determining the validity of the reversal. Thus, if the stock goes up, the volume should increase substantially, which would increase the probability of the stock reaching the channel’s upper edge. From the macroeconomic perspective, the current Fed Funds interest rate and the negative Sharpe Ratio suggest that the market is becoming more cautious, which, however, does not rule out the possibility of the stock movements similar to those of JNJ.
This is a make-or-break time for the asset. If support continues to hold and there are other signs of a reversal such as patterns or higher volumes then JNJ can experience a substantial change in trend.
