Stock of the day: Johnson & Johnson

Let’s take a closer look at the Johnson & Johnson chart, where we’ve observed a recovery phase, particularly throughout July. However, as we’ve moved into August, the stock has encountered some difficulties. Notably, there was an unsuccessful attempt to break above the $163 resistance level, marked in orange. This attempt, highlighted by a red rectangle, turned out to be a false bullish breakout. As many of you who have followed our analysis know, false bullish breakouts often lead to subsequent bearish movements, which is exactly what we’re seeing now with Johnson & Johnson’s performance in August.

The key levels to watch remain unchanged. The $163 resistance level, marked in orange, is still crucial, and any successful breakout above this level would signal a buy opportunity. Conversely, there’s a significant support level at $157.20, marked in green. Should the price break below this green support, it would provide a strong signal to sell.

Given the recent false breakout to the upside, the bearish scenario currently seems slightly more likely. However, the market’s direction will hinge on how the price interacts with these key levels in the coming days.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-johnson-johnson-3