Johnson & Johnson share outlook before the earningsShares in Johnson & Johnson (symbol ‘JNJ’) have been trading in a bearish momentum throughout the whole first quarter of 2023 before correcting to the upside in recent sessions. The company is expected to report its earnings for the fiscal quarter ending March 2023 on Tuesday 18th of April before market open. The consensus EPS is HKEX:2 ,50 compared to the result for the same quarter last year of HKEX:2 ,67.
‘Johnson & Johnson has been paying dividends since 1972 and is one of the very few companies to do that for such a long period of time. This proves that investors buying this share are in for the long term and with a payout ratio of more than 60% and a dividend yield of more than 2.70% also proves the commitment of the company towards its shareholders.‘ said Antreas Themistokleous, an analyst at Exness.’
On the technical side the price has been trading in a downward movement throughout the whole of the first quarter of the year but it has rebounded significantly in the recent sessions with the price making back almost 50% of the losses incurred in the first 3 months. The price is currently trading outside the Bollinger bands indicating great volatility in the market. The HKEX:166 level was a strong technical resistance area since it consists of the 50% of the daily Fibonacci retracement level and also the 100 day moving average.
With the Stochastic oscillator recording overbought levels and with the strong technical resistance still in play we might see some minor correction to the downside prior to the earnings release. If this is the case then we might see some support around the HKEX:157 price area which consists of the crossing of the 50 day moving average on the 23.6% of the Fibonacci retracement level.
