Stock of the day: Johnson & Johnson

Johnson & Johnson’s weekly chart is showing an exciting technical setup that could signal a trading opportunity for the next few months or even the rest of the year. A large head and shoulders pattern (yellow) has formed, and we’re currently testing the neckline (black) after completing the right shoulder. We’re also testing a key horizontal support level at 156 (green) that has been important since 2020, and the price is bouncing off the 38.2% Fibonacci level.

As long as the price remains above all of these supports, there is no sell signal yet. A bounce off these levels could lead to a long-term buy signal. However, if the price closes below the green area, it would be a strong signal to go short. Last week’s candle suggests that buyers still have a chance for success, but the next few weeks will be crucial in determining the direction of the trend. I’m eagerly awaiting what’s to come!

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-johnson-johnson