I remain positive on Johnson & Johnson (JNJ) since our last update in mid-September, where we said, "continue to hold longs risking below $130 now. Add to longs on a close above $136, looking for gains to $150 and perhaps higher." Prices recently undercut the $130 level so your current position depends on how far below $130 was your sell stop. You could be flat or still long.
Let's check our updated charts and indicators for fresh guidance.
In this daily bar chart of JNJ, below, that prices have been trading lower since late June in a slightly downward sloping channel. The slope of the 50-day moving average line is negative but the 200-day moving average line is still pointed up. The On-Balance-Volume (OBV) line has moved sideways to slightly lower over the same time period suggesting some minor increase in selling. The Moving Average Convergence Divergence (MACD) oscillator has been stuck close to the zero line, suggesting little trend strength.
In this weekly bar chart of JNJ, below, we can see an uptrend going back two years and a rising 40-week moving average line for the entire advance. The weekly OBV line was strong from September 2015 but declined the past two months. The weekly MACD oscillator crossed to the downside in August signaling a take profits sell.
In this Point and Figure chart of JNJ, below, we can see the uptrend and a longer-term price target of around $163.
Bottom line: Prices have shown a little softness since our mid-September review but a close above $136 would quickly turn things more positive. If you have no position in JNJ I would be a buyer on a close above $136 and then risk below $131.
