The Johnson & Johnson (JNJ) selloff could be over. It may be a little early to go long, but it looks like the short side won't be rewarding.
Looking at this one-year daily bar chart of JNJ, below, we can see a downtrend from early August. Prices made a low in December and then a bounce. The bounce ran out of steam and prices retested the December low in the past few days.
The On-Balance-Volume (OBV) line has declined sharply in the past few weeks and this may be a kind of "wash out" move. Now look at the momentum study which shows a higher low in January vs. late November.
This Japanese candlestick chart may be catching the reversal with a possible hammer pattern today. Notice a similar hammer pattern in early December?
I would like to see some confirmation of this reversal tomorrow but right now I would "stick my neck out" and write puts.