Johnson & Johnson is often a dull stock, but it had some exciting price action yesterday.
The health care giant dropped 1 percent in the initial seconds of trading, undercutting Friday’s low. Buyers immediately came out of the woodwork, driving the stock to its highest close in over three months. The result was a large bullish outside candle.
Next, the surge planted JNJ back above its 200-day simple moving average (SMA) for the first time in almost as long.
Third, the recent bounces near $158 created something of a W-shaped double bottom.
Fourth, safe-havens like health care have gained relative strength in the last week as investors brace for a hawkish Federal Reserve.
JNJ has also enjoyed some interesting news lately. Quarterly results on October 19 were better than expected. It followed on November 12 with a plan to split into two companies. That’s potentially a big deal because spinoffs can allow multiple expansion as investors assign different valuations to various business lines.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The health care giant dropped 1 percent in the initial seconds of trading, undercutting Friday’s low. Buyers immediately came out of the woodwork, driving the stock to its highest close in over three months. The result was a large bullish outside candle.
Next, the surge planted JNJ back above its 200-day simple moving average (SMA) for the first time in almost as long.
Third, the recent bounces near $158 created something of a W-shaped double bottom.
Fourth, safe-havens like health care have gained relative strength in the last week as investors brace for a hawkish Federal Reserve.
JNJ has also enjoyed some interesting news lately. Quarterly results on October 19 were better than expected. It followed on November 12 with a plan to split into two companies. That’s potentially a big deal because spinoffs can allow multiple expansion as investors assign different valuations to various business lines.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
