JNJ breaks back below 50-day moving average
Johnson & Johnson (JNJ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JNJ ended Wednesday at 148.40 losing $0.49 (-0.33%) on low volume, slightly underperforming the Dow Indu. (0.13%). Trading $0.66 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 148.52, the share confirmed its breakout through the prior session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (JNJ as at Sep 16, 2020):
Wednesday's trading range has been $1.69 (1.13%), that's below the last trading month's daily average range of $2.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JNJ.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on August 10th, JNJ lost -0.72% on the following trading day.
The stock closed back below the 50-day moving average at 148.79. After having been unable to move lower than 148.52 in the previous session, Johnson & Johnson found buyers again around the same price level today at 148.36.
JNJ shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 150.59 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 146.52 where further sell stops could get activated. Further selling might move prices lower should the market test August's nearby low at 145.82.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Johnson & Johnson. Out of 60 times, JNJ closed higher 51.67% 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 0.46%.