JNJ tanks, losing $5.81 (-4.15%) within a single day on high volume
Johnson & Johnson (JNJ) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JNJ finished the week -4.46% lower at 134.30 after tanking $5.81 (-4.15%) today on high volume, notably underperforming the Dow Indu. (0.9%). This is the biggest single-day loss in over seven months. The last time we've seen such an unusually strong single-day loss on June 26th, JNJ lost -0.82% on the following trading day. Today's close at 134.30 marks the lowest recorded closing price since June 4th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 139.02, Johnson & Johnson confirmed its breakout through the previous session low after trading up to $6.70 below it intraday.
Daily Candlestick Chart (JNJ as at Jul 12, 2019):
Friday's trading range has been $7.80 (5.57%), that's far above the last trading month's daily average range of $1.93. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JNJ.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 200-day moving average at 137.46 for the first time since June 6th.
Crossing below the lower Bollinger Band for the first time since May 31st, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 140.69 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test June's close-by low at 131.04.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Johnson & Johnson. Out of 70 times, JNJ closed higher 61.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.00% with an average market move of 0.72%.