Johnson & Johnson was in a sharp correction at the end of January. Since early February, it has been consolidating sideways. After further consolidation and downside, I think we might want to anticipate support around $125. JNJ Daily Chart(click to enlarge)Bearish:- The daily chart shows that since price tagged $148, it retreated and has been in a bearish-neutral mode. - It has flattened out, but price is still below the 200- 100- and 50-day simple moving averages. Meanwhile the RSI holding under 60 shows that the prevailing bearish momentum is still in play. - It would be reasonable to anticipate even further decline below the current low around $122.15. Support, Bullish Trend:- But I would first anticipate support around the $125 area. If price does break below $122, then I would reassess. - Around $125, we are in the recent support area. - The reason I have some confidence in this area to provide support again is that the long-term trend is still bullish. - Holding above this $122-$125 area would maintain the long-term bullish momentum.- The weekly chart shows that JNJ has been in a persistent bullish trend. The fact that the RSI is still holding above 40 for the most part reflects maintenance of this long-term bullish momentum.- If price can eventually hold above $125 and push above $132, I think the market would be ready for a bullish continuation first towards $136-$137, then towards this year's high around $148.Bearish Scenario:- If price can't push above $132 and fall below $122, we can expect downside towards the $116 area. - This scenario is still within the context of the long-term bullish trend because price would still be above the 200-day simple moving average. Buy the Dip, Reward to Risk?-This analysis supports the buy-the-dip approach as there would be limited risk around $125 (with stop around $121) and target being at least $132 with potential upside to $148. - The above scenario yields a reward to risk of about 3:1.JNJ Weekly Chart(click to enlarge)