JNJ pushes through key technical resistance level
Johnson & Johnson (JNJ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, JNJ ended Thursday at 126.57 gaining $7.17 (6.01%), slightly underperforming the Dow Indu. (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 123.96, the share confirmed its breakout through the previous session high after trading up to $3.14 above it intraday.
Daily Candlestick Chart (JNJ as at Mar 26, 2020):
Thursday's trading range has been $6.72 (5.57%), that's slightly below the last trading month's daily average range of $7.46. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for JNJ.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 18th, JNJ actually lost -5.86% on the following trading day.
Buyers managed to take out the key technical resistance level at 124.50 (now S1), which is likely to act as support going forward.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Johnson & Johnson. Out of 436 times, JNJ closed higher 51.15% 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 58.94% with an average market move of 0.44%.