Stock of the day: Johnson & Johnson

In today’s analysis, let’s focus on Johnson & Johnson, which is currently displaying a very positive technical sentiment.

The key feature on the chart is the long-term horizontal support around $144, marked in yellow. This level has served as a significant support area multiple times in the past, including April, May, June, and December. However, in January, this support was breached, leading to a temporary breakdown. But what makes this situation noteworthy is the false breakout, which is now marked with red color on the chart.

False breakouts are often considered powerful signals in the opposite direction, and this case appears to be no exception. After the price regained its footing above the yellow support, it quickly began climbing higher, indicating strong bullish momentum.

Another positive signal came with the breakout above the blue horizontal resistance, which had previously capped upward movements. Yesterday’s price action added further confirmation to this bullish outlook: the daily candle featured a long bullish body and a high daily close, signaling that buyers are in control.

As long as the price remains above the yellow support, sentiment remains firmly positive. This false breakout and subsequent recovery have strengthened the bullish case, and the current trajectory suggests further upside potential.

However, if the price were to unexpectedly fall back below the yellow support, it would invalidate the bullish scenario and serve as a sell signal. That said, the likelihood of this happening appears limited at the moment, given the strong momentum behind the recent move.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-johnson-johnson-10