JNJ- short from today's open JNJ is very strong company but recently experiencing negative rollover with very sharp negative money-flow divergence. There are also insider selling as well.
We like to short it from current level & our first target is 112.73
On the option side we are looking for Jan17- 120 put currently trading at $3.90
"You can check our detailed analysis on JNJ in the trading room/ Executive summery link here-
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Time Span: 6:40"
Trade Status: Pending
JNJ trade ideas
JOHNSON & JOHNSON triangle Patternthe Ascending triangle is a bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
Traders enter into long positions when the price of the asset breaks above the top resistance. Wait for the breakout of the structure before entering the trade. Beware of the red resistance level shown.
Español:
El triángulo ascendente es un patrón gráfico alcista utilizado en el análisis técnico que es fácilmente reconocible por la forma distinta creada por dos líneas de tendencia . En un triángulo ascendente , una línea de tendencia se dibuja horizontalmente a un nivel que ha evitado históricamente el precio siga subiendo , mientras que la segunda línea de tendencia alcista que conecta una serie de bajos mas altos.
Los traders suelen entrar en posiciones largas cuando el precio de la acción rompe por encima de la resistencia superior . Esperen a la ruptura de la estructura antes de entrar en el trade . Cuidado con el nivel de resistencia de color rojo mostrado.
ST: JNJ - at support01/21 - 01/29 strong bullish move.
01/04 gap + 01/28 spinning top + 02/03 re-test
--------------- my plan-----------------------------
If the price goes above my entry line, watch for a intraday bullish trade.
If the price moves below my stop line, the odds are gone. Take JNJ off the list.
If the price moves below the stop line but then form something else around 100.83, uh.. we'll see...
Basic analysis shows JNJ is about to face strong resistanceA very basic analysis for $JNJ shows that the stock is facing a major resistance zone before earnings.
The 98-100$ zone, a strong structure that held as support during more than a year, was broken during August and now became resistance.
Add the 200 SMA line, the downtrend line and the sellers pressure that this stock will face when it will reach the psychological number of 100$ and you'll get pretty good reasons to be concern if you are still holding a bullish position in $JNJ.
DOW JONES OVERVIEW: JNJ HOLDS LONG TERM TREND, SHORT TERM RISKJNJ micro picture currently contradicts macro one.
On long term basis, JNJ has held the test of 10-year trend by falling below and then bouncing back up above the 10-year uptrend border (marked by 1st standard deviation from 10-year mean, now at 91)
On short term basis, however, price has fallen below 1st standard deviations from quarterly (66-day) and 1-year (264-day) means, signaling continued downside probability.
The downside risk remains until the price trades back up above short term risk border, marked by lower 1st standard deviation from 1-year mean (at 97 now)
Johnson & Johnson vs USDJohnson & Johnson has seen extreme price consolidation since last November. Since they are a highly diversified healthcare company, currency translations affect their bottom line quite substantially. With the recent contraction of the US Dollar, Johnson & Johnson has broken out of a prolonged trading range. If the dollar continues to contract against other foreign currencies, Johnson & Johnson will make better on their hedges and increase the bottom line substantially, thus increasing free cash flow and overall economic opportunity.