Johnson & Johnson - (JNJ) - June 23, 2022 (Daily Stock Report)

by SIACharts.com

 

 

The relative strength performance of pharmaceutical and personal products producer Johnson & Johnson (JNJ) over the last fifteen years provides a textbook example of the relative strength profile for a low-beta defensive stock. JNJ has spent most of the last 15 years bouncing around between the red and yellow zones of the SIA S&P 100 Index Report, particularly during times when the market was doing well and its performance as a mature, stable stock lagged that of high flyers on a relative basis.

Johnson & Johnson has spiked up in the rankings several times over the last decade and a half, most of which have coincided with times of market turmoil including 2008, 2011, 2016, 2018, and 2020. This year, JNJ has been climbing up the rankings once again and yesterday it returned to the Green Favored Zone for the first time since March of 2020. Yesterday it finished in 26th position, up 4 spots on the day and up 10 places in the last month.

Since the March 2020 market bottom, Johnson & Johnson (JNJ) has been consistently climbing through a series of rallies followed by periods of consolidation in higher ranges. Through late 2021 and the start of this year, JNJ had been consolidating between $155 and $175, more recently, this has shifted up into a $165-$185 range with additional support possible near $160.

A close above $185 would signal the start of a new upleg with next potential resistance in the $195-$205 area, based on measured moves and the $200 round number.

 

Since the March 2009 market bottom, Johnson & Johnson (JNJ) shares have been under steady accumulation, advancing in a step pattern of rallies followed by periods of consolidation at consistently higher levels. The only notable speed bump along the way was the March 2020 market crash.

Through 2021 and into this year, JNJ has remained under accumulation, continuing its upward trend of higher lows. Back in April, the shares peaked near $186.65, a level that has emerged as initial resistance, and the shares have reversed four rows. Although a bearish High Pole Warning has been triggered, it has been small so far and the shares remain in an overall uptrend above support near $162.50 and $156.15 near previous column highs and lows. A breakout to the upside from the current consolidation range would signal the start of a new upleg with next potential resistance in the $200.00 to $202.00 area between a round number and a vertical count.

With a bullish SMAX score of 9, JNJ is exhibiting strength against the asset classes.

 

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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