JNJ breaks below 20-day moving average for the first time since July 2nd
Johnson & Johnson (JNJ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
JNJ finished the month 3.65% higher at 145.76 after losing $1.08 (-0.74%) today on high volume, significantly underperforming the Dow Indu. (0.44%). Closing below Thursday's low at 146.14, the share confirmed its breakout through the prior session low after trading up to $2.18 below it intraday.
Daily Candlestick Chart (JNJ as at Jul 31, 2020):
Friday's trading range has been $3.49 (2.38%), that's far above the last trading month's daily average range of $2.30. 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.
After trading as low as 143.96 during the day, Johnson & Johnson found support at the 50-day moving average at 145.07. The stock closed below the 20-day moving average at 146.71 for the first time since July 2nd. The market ran into sellers again today around 147.45 for the third trading day in a row after having found sellers at 147.50 in the previous session and at 147.47 two days ago. The last time this happened on March 16th, JNJ actually gained 7.44% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 147.50 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Johnson & Johnson. Out of 599 times, JNJ closed higher 55.43% 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 60.93% with an average market move of 0.61%.