Johnson & Johnson (JNJ) made a new high for the move up last month but overall it continues to struggle. What key chart points should we pay attention to? Let's check.
In this daily bar chart of Action Alerts PLUS holding JNJ, below, we can see that the price of the stock has been bouncing off the 200-day moving average line. In late May and early June JNJ broke below the line but quick rallied back above it. The next test of the line may not be so lucky.
Currently the On-Balance-Volume (OBV) line has been weakening and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.
In the weekly bar chart of JNJ, below, we can see that the slope of the 40-week moving average line has begun to roll over and the weekly OBV line did not confirm last month's new high.
The weekly MACD oscillator is close to a crossover so the price action from here will be important.
In this Point and Figure chart of JNJ, below, we can see a potential upside price target of $169 but a decline below the June low around $130 will be bearish.
Bottom-line strategy: You can watch the latest trial against JNJ in Oklahoma on Court TV, but I would rather watch the charts. The trial and the decision are still up in the air but the charts are looking shaky.