Technical Analysis for Johnson & Johnson Share: Positive Catalysts Supporting Bulls

Technical Analysis for Johnson & Johnson Share: Positive Catalysts Supporting Bulls

Johnson & Johnson share is presently trading near the upper line of the classical broadening wedge pattern as seen on the provided daily chart where it stabilizes in the 118.86 levels.

Technical Catalysts:

  • A harmonic crab pattern is under construction with a confirmation above B point.
  • Breaching through the upper line of the classical pattern will add more solidity to the bullish scenario.
  • MACD and RSI are positive.
  • Prices stabilize above SMA 10, 20 and 50 as well.
  • Volumes increases and that gives a reliable signal.

Despite all these signals, but we prefer to buy after additional confirmation with a break above the upper line of the classical pattern.

Technical targets reside at 122.50, 126.00 while the completion of the pattern will be seen at 130.65.

Finally, stop loss should be placed below 117.00 territories.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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