We reviewed the charts of Johnson & Johnson (JNJ) recently where I wrote that, "JNJ finally looks ready and able to rally. Traders can go long and investors can add to longs above $134. Risk below $126 for now looking for the $150-$155 area."
JNJ has rallied to a new high for the move up and traders who are long could raise sell stop protection to $130 from below $126. Let's check some updated charts to see if our strategy is still on track.
In this updated daily bar chart of JNJ, below, we can see that prices rallied strongly from early July. JNJ is above the rising 50-day moving average line and the still declining 200-day line.
The daily On-Balance-Volume (OBV) line has moved up to a new 12-month high and is foreshadowing/leading new price highs.
The trend-following Moving Average Convergence Divergence (MACD) has turned up to a fresh outright go long signal.
In this weekly bar chart of JNJ, below, we can see improvement in the picture. Prices are above the flattening 40-week moving average line.
The weekly OBV line is curving up and the weekly MACD oscillator is getting closer to crossing above the zero line and a fresh outright go long signal on this longer time frame.
In this Point and Figure chart of JNJ, below, we can see an upside breakout at $135.28 and a price target now of $152.46.
Bottom line strategy: Traders long JNJ can continue to hold with a $130 sell stop. Dips to $134 can be bought as well as new highs for the move up. The $148-$152 area is our price target.