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Fan Yang

Johnson & Johnson (JNJ) Signaling a Possible Reversal Against its 2019 Rally

Johnson & Johnson $JNJ has been rallying since late December. But after a run from $122 a share to $140 a share, I think JNJ is topping.

JNJ Daily Chart

(click to enlarge)

Topping?
- As we can see on the daily chart, JNJ has been  making higher highs and higher lows since late December. 
- However, it failed to break above $140 twice, forming a possible double top. 
- We also saw a lower high last week.
- Finally, the key support is right around $136.60. Price briefly broke this support but closed the 3/25 session right on top of it.
- If price closes below $136 this week, I think we are going to see some more downside in April. 

Consolidation:
- As we can see on the weekly chart, JNJ's bullish trend stalled in 2018 after $148 held as resistance twice (double top?).
- We can say that JNJ has been in consolidation mode. 
- During this consolidation mode, there could be downside back to the $120-$122 area. 
- I would not be surprised if price eventually extends lower towards $110. 
- For now though, I would limit the bearish outlook to the $120-$122 area, but I am making sure I have dry powder for this area as well as the $104-$110 area. 

JNJ Weekly Chart

(click to enlarge)

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