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- 1 JNJ stock price corrected approximately 10% from the recent swing high.
- 2 Johnson and Johnson stock price dropped below the 50-day and 200-day EMA.
- 3 JNJ stock price struggled to defend the $160.00 support.
JNJ stock price showed a steep fall and corrected approximately 10% from its recent swing high. It formed a bearish pattern and eroded a big portion of the market capitalization.
Johnson and Johnson stock price dropped below the 50-day and 200-day EMA. It showcases that the trend has reversed in the downward direction. However, the 200-day EMA slopes sideways denoting that the price might soon enter in a consolidation.
Johnson and Johnson released the previous quarter earnings on July 20, 2023. The company succeeded in beating the EPS as well as revenue estimates.
Due to this, the JNJ stock price reacted positively and surged 6.07% in a single day. Later, the price gave the follow-up momentum and the price hit a high of $175.00.
JNJ stock price faced minor profit booking from the supply zone. But $166.00 acted as support and prices again bounced back to give another attempt.
JNJ stock consolidated for a few days in the supply zone but was unable to break the $178.00 hurdle. Later, prices faced rejection and reverted down.
Meanwhile, the spike in the selling volume is also visible which indicates some big players might have exited from higher levels.
JNJ Stock Price Holds the July Lows?
JNJ stock price took support near the July lows at $158.00. It has corrected a lot from its swing high so a narrow range consolidation or minor pullback is expected.
Till Johnson and Johnson stock is trading below the 50-day and 200-day EMA, the trend is expected to remain bearish.
However, if the overall market recovers and buyers succeed in climbing above the EMAs, then the possibility of regaining the $170.00 will substantially increase.
On the other hand, if the price drops below $150, then it may raise concerns for long-term investors.
Johnson and Johnson Stock Price Analysis On Weekly Time Frame
Johnson and Johnson stock price formed a bullish hammer candle on the weekly time frame. It shows that buyers are actively near the support and trying their best to rebound. JNJ stock price looks oversold so a bounce back toward the 50-day EMA is possible.
The MACD curve displayed a negative crossover and slips below the zero line indicate bearishness. The RSI at 37 denotes the strength of bears. But if the prices recover, then the RSI might reach neutral territory.
Conclusion
JNJ stock price is in a correction phase and eroded the majority of the gains generated after earnings. However, the downfall has taken a halt near the July low and buyers are trying their best to rebound.
The analysis suggests that if Johnson & Johnson stock price climbs above the EMAs then the probability of regaining $70 will increase.
Technical levels
- Resistance levels: $169.00 and $176.00
- Support levels: $157.00 and $153.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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