Johnson & Johnson (JNJ) is in the news this morning. The company announced that it has selected a lead Covid-19 vaccine candidate. A Phase 1 clinical trial should launch in September. The first batches of product could be available for emergency use in early 2021.
Let's check the charts of JNJ to see if investors will react positively to the news.
In this daily bar chart of JNJ, below, we see a bearish picture but that is not the whole story. Prices broke below the lows of August, September and October. The slopes of both the 50-day moving average line and the 200-day moving average line turned negative.
The trading volume in March looks like it doubled from February and the On-Balance-Volume (OBV) line sank to a new low for the past 12 months.
The Moving Average Convergence Divergence (MACD) oscillator has been in negative territory since late February and still has not yet generated a cover shorts buy signal. This picture could change quickly but as of Friday's close the pattern was not constructive.