A Technical Reversal To The Downside For Johnson & Johnson Stock

Contributor Image
Written By
Contributor Image
Written By
Tran Dai Phat
Tran Dai Phat, a Forex Educator at FXTM with a Bachelor's Degree in Investment, brings multiple years of financial market experience to the aid of aspiring traders everywhere. He conducts research on stocks, forex, and commodities, sharing his insights to empower traders and encourage the development of simple strategies for maximizing trading potential.

The Johnson & Johnson stock (NYSE: JNJ) on the Daily Chart has been following an upward path since 4 March 2021, having found support at the $151.44 level.

The attractive price enticed bulls who entered the market with long positions and as a result they have pushed JNJ to higher levels, following a pattern of successively higher tops and higher bottoms.

Subsequently, a Shooting Star Pattern was formed near the resistance level of $172.72 which hinted at the end of the rally and the potential beginning of a decline.


Upon applying Technical analysis on the price chart, one can see that the Japanese candlestick after the Shooting Star Pattern managed to close below the 10-period Exponential Moving Average line, a fact that also points to the downward direction and the bearish bias in the market.

Additionally, the Relative Strength Index Oscillator also registered values below the fifty line, which also confirms the negative sentiment in the market.

Both technical indicators, as well as the Japanese candlestick reversal pattern, are in agreement in terms of the stock’s downward bias.

Furthermore, JNJ stock is trading below the upward trend line, which also implies that supply is greater than demand.

Retracement Levels

Applying the Fibonacci Retracement tool to the low price of the Bearish Japanese candlestick at the price of $165.45 and dragging it up to the high price of the pattern at the price of $170.99, three price targets were calculated:

  • The first price target is estimated at $159.91 (200%)
  • The second price target is seen at $154.37 (300%)
  • The third price target is projected at $148.83 (400%)

Of course, it remains to be seen whether the crowd psychology as well as the bears’ pressure will manage to maintain the control of the market and push the Johnson & Johnson stock lower.

johnson daily

For more information, please visit: FXTM

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXTM is a top-rated forex and CFD broker established in 2011 and operating across 4 continents. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ day trading markets and three account types, they cater to all levels of trader.