Stock of the day: Johnson & Johnson

In today’s stock of the day, and the last one for this week, let’s take a look at Johnson & Johnson, which is presenting a compelling short trade setup. The key level to watch is the $163 mark, highlighted in blue. This level has been a crucial resistance point since the beginning of the year and was briefly broken at the end of August. However, the breakout turned out to be false, as the price has since fallen back below this level, marked by an orange rectangle.

False breakouts often signal a reversal in the opposite direction, suggesting a downward trend. Currently, the price staying below the blue horizontal support is a strong indication to sell, as the sentiment remains bearish. For now, any movement back above this resistance level would negate the sell signal, but the likelihood of this scenario appears low given the current market dynamics. As long as the price remains below $163, the outlook for Johnson & Johnson is bearish.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-johnson-johnson-5