JNJ trade ideas
JNJ, a 75 cents risk daily bullish Bat Pattern. (MCD FTF trade)Both of JNJ and MCD are stocks that I want to have in my retirement portfolio, they are typical stocks that worth the easiest buy and hold strategy.
While it doesn't mean they are not tradable at all,since if I don't really want to risk 10-20% for a mid-term investment, I may turn to some tiny risk short-term trading opportunities.
Here JNJ got a daily bat pattern with a suggest entry near 130.30.
Also, 130 fig support itself is usually strong enough to rely on, so I would like to buy off the support with this 2 strategies' combination.
JNJ is a stock that worth more than 10% risk, if I can trade it with only 75 cents risk, I can trade much much more shares if I'm willing to risk the same amount of money. (for sure I won't risk as much though)
Of course less rooms mean lower winning percentage, and being stopped out in such a name with such tiny risk sounds silly.
While my purpose for day-trading is always to create longer term swing positions, and I don't mind if the trade failed as it's the risk I'm willing to lose, and it will be very good positions if the trade succeeds.
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On the other hand, the MCD 160 breakout is another trade that I'm very willing to get involved.
It has tried several times and consolidate a lot in front of it , which should accumulate much power for the breakout. 156.95 might be a good out for the swing trade with 162.95 1st kick.
160 level could be a intraday FTF trade (I believe no one knows FTF trade, since I invented it lol)
FTF trade: find a 5 minute or 15 minute out for the day traders who trade the breakout , put a buy limit 1:1 to their risk, put the out to the previous pivot low in the given time frame.
EX: if the potential out is 159.80, the 160 breakout's risk are 20 cents, so FTF trade will put a buy limit @ 159.60.
*the potential out is the out day traders may use if they are involved with the breakout, so think about where they will put the out to find the potential out.
Logic:
If the 1st try of the breakout fails, the traders who traded the breakout will be stopped out and it created extra, unnecessarily selling pressure that causes slippage.
The people who can benefit from the slippage are the people who already put their buy limit there.
It's a trade that I invented after suffering slippage a lot and I tried several times back then I day-traded a lot.
JNJ On the road to disaster due to $417 Million Lawsuit Loss?Fundamentals:
It seems Johnson & Johnson are on the road to disaster following a $417 Million Dollar verdict in baby powder case.
This is just the start of JNJs troubles as there are an incredible 4,800 Pending claims in the US Courts alone, over JNJs talc products.
The announcement from the article explains "LOS ANGELES—A jury on Monday awarded a woman with ovarian cancer $417 million in a case against Johnson & Johnson, the latest hit to the pharmaceutical company in widespread litigation over the alleged harms of its baby powder." - Sara Randazzo of the Wall Street Journal
Technicals:
After careful analysis, it seems that a WXY consolidation wave on the Intermediate period, has just completed and we may possibly see the start of an Impulse wave Down on the Intermediate time period, IF a breakout of structure occurs. Support and Resistance shows the possible formations during the downtrend.
Mustard and Ketchup EMAs have continued with the Uptrend since 2015 however due to the Fundamental issues facing JNJ, we can now expect a crossing of the Mustard, Ketchup EMAs with the Water EMA to confirm the downtrend move SHORT. Although TDI shows continued upwards band movement, RSI line shows close to overbought position above 60.0000.
In my opinion, I shall wait for more market data to occur, especially at market open to see if it will open with a GAP. If a GAP is present on Open today, that could be a precursor to future market sentiment as JNJ still has a whopping 4,800 pending claims to deal with and if the payouts are going to be in the vicinity of $400 Million, using this current case as a precendent, multiplied by 4,800 (in the USA alone - Not mentioning cases in other countries to be filed), I don't like the look of JNJs chances of surviving in the future. JNJ has enjoyed solid growth since the early 1990s, however putting customer's health at risk together with incompetent practices, usually equals a disaster which could be irrepairable. If price action breaks structure on the BLUE trendline (marked on my chart), I will start SHORTING this stock with large volume.
If price action breaches the RED trendline, another large volume will be shorted for maximum profit.
Informational Reference: Wall Street Journal
Article Here: www.wsj.com
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DISCLAIMER: This chart is for sharing and educational purposes only and is not intended to be a signal service or similar.
This chart analysis is only provided as my own opinion, based on my own analysis and comes with absolutely no warranty that this analysis is correct, whatsoever. Do not trade this chart if you do not have your own strategy. Trade only with your own strategy at your own risk. Plan your trade and trade your plan... and IF in doubt, stay out.
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JNJ long today at the opening very good major up trend.
the poolback ends with OKR reversal pattent
stop loss is 131 NYSE:JNJ
Johnson & JohnsonJNJ pulling back from it's high of 137 but still in a nice uptrend. Buying the $131 level. looks to have good support there and offers good risk/reward to trade against.
Entry: $ 131.00
Stop: 129.96
Target: $138
Overbought Johnson & Johnson (JNJ) Set To Drop 4%Johnson & Johnson has been in a bullish trend since 2009. On a few occasions through this trend, three of the technical indicators discussed below are at similar or higher levels, than they are now. These instances have resulted in short-term losses for the stock. I have also conducted further analysis based on other historical information and readings that confirm a pending drop for Johnson & Johnson which are laid out below.
When we look at technical indicators, the relative strength index (RSI) is at 86.2704. RSI tends to determine trends, momentum, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI is well overbought and it one of its highest levels ever recorded for this stock.
The positive vortex indicator (VI) is at 1.3091 and the negative is at 0.5914. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The positive value is relatively high and is beginning to slow its upward movement. This slowing momentum is an additional signal the stock should turn downward soon.
The stochastic oscillator K value is 93.2126 and D value is 92.3311. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic is very overbought. It cannot sit at this level much longer. Once the K value crosses below the D, the stock should begin to drop.
SPECIFIC ANALYSIS
I have created an algorithm (called SAG gauge) which signals when stocks are truly overbought and oversold. The algorithm indicates when a particular stock meets multiple criteria which culminates in an oversold or overbought alert. That signal will occur within the next few days once the stock sees two days of consecutive drops. Because this signal will go off after continued drops, now is the best time to enter a position and take greater advantage of the pending downward movement.
Upon back-testing this indicator, it has signaled overbought status 139 times dating back to 1970. Eighty percent of the time the stock drops at least 1% over the following 30 trading days after the indicator date. Seventy percent of the time, the stock drops 2% and fifty percent of the time drops 4%.
In the history of this stock, it always drops a minimum of 4.52% when the positive VI is at or above its current level at the same time the RSI is at or above its current level. This additional study requires the stochastic to be overbought as it is today too. Since this current bull began in 2008-2009, the RSI has never reached it current level. I do not like only having one data point to base projections from, however, multiple signals are at play and support a drop from the stock's current level.
The stock is also at its long-term (since 2009) resistance line. The stock has broken above this line twice before. Both times the high of the day broke above this line, while the stock always closed below it. The exact same thing has occurred today. The median drop on those occasions was 9.83% and it occurs over an average of the following 17 trading days.
The SAG, record-high RSI reading, and flirtation with the long-term resistance line all point to downward movement for JNJ. Considering the RSI, VI and stochastic levels, the overall direction favors a move to the downside. Based on historical movement compared to current levels and the SAG gauge, the stock could drop at least 5% over the next 31 trading days if not sooner.
Elliott Wave Johnson & Johnson (JNJ)The weekly chart appears to count cleanly enough as a 5 wave advance, so we can suggest an impulse wave is close to completion. If the bull cycle from the 2009 lows are close to ending, then a substantial correction is expected, I would favor at least a move back to the previous 4th wave at 85.00 or lower
JNJ analysis nearing a peak, 3rd of a 3rd of a 5th waveThis analysis combines channelling, 200 SMA, and Elliott Wave. I noticed a breakout chart by user 'pardis,' and decided to trade the stock. Here is my own analysis of the stock after purchasing a few shares with an entry at 130.98/130.45. There was a breakout around 129, and I looked into the price history to have a better understanding of where the stock possibly is heading towards. Pardis gave an upwards prediction of going to around 139, so I am using an All or Nothing trade strategy, with the intent to use stop losses possibly around end of day, 2R, and 3R. My Elliott Wave analysis shows that there has been a long term since 2015 bullish trend going on, with the stock already in an ending 5th wave movement. The 5th wave seems to also be extended, with the current price action showing it to be in a 3rd of a 3rd wave movement. I predict that this sentiment can last throughout the summer for quite some while, before finally peaking around the levels that 'pardis' had indicated. The stock also seems to have bounced recently off near the 200 SMA during the 4th wave change. This well known stock seems to also be coinciding with some possible peaking action within the indices. As they seem to be going through some impulsive moves upwards, there will likely be a correction sooner or later.
