JNJ finds buyers again around 137.95
Johnson & Johnson (JNJ) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JNJ finished Thursday at 139.56 gaining $0.18 (0.13%) on low volume, slightly outperforming the Dow Indu. (0.1%). Today's close at 139.56 marks the highest recorded closing price since July 11th. Trading up to $1.40 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, JNJ gained 1.62% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JNJ as at Dec 05, 2019):
Thursday's trading range has been $1.79 (1.28%), that's slightly above the last trading month's daily average range of $1.71. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for JNJ.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After trading down to 137.95 earlier during the day, the share bounced off the key technical support level at 138.27 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 138.04 in the previous session, the market found buyers again around the same price level today at 137.95.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for Johnson & Johnson. Out of 15 times, JNJ closed higher 60.00% 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 two trading days, showing a win rate of 66.67% with an average market move of 0.13%.