Stock of the day: Johnson & Johnson

In today’s stock of the day, let’s focus on Johnson & Johnson, where the chart is shaping up into a very familiar and promising technical formation. The stock is currently trading inside a falling wedge, marked with red lines. Falling wedges within an existing uptrend are typically bullish continuation patterns, often leading to an eventual breakout to the upside.

What’s interesting is that the price action has already shown early signs of strength. After a prolonged sequence of lower lows, the market structure has shifted: Johnson & Johnson has stopped making fresh lows and recently formed a higher low. This subtle change often marks the first stage of a broader trend reversal and tells us that sellers are losing steam.

For the buy signal to be fully confirmed, however, two pieces are still missing. First, the stock needs to complete the market structure shift with a new higher high. Second, and most importantly, it must break above the upper boundary of the wedge. That breakout would validate the bullish setup and trigger a proper long-term signal to buy.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-johnson-johnson-14