Johnson & Johnson ( JNJ) is ready to pull the band-aid off of their earnings numbers on Tuesday. Let's check out the charts and indicators of this pharmaceutical and healthcare giant. 
In this daily bar chart of JNJ, below, we can see that prices rallied from December but stopped short of its August zenith. JNJ has pulled back to close below the 50-day moving average line as well as the 200-day moving average line. The On-Balance-Volume (OBV) line has rolled over from December and tells me that sellers of JNJ have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal and is now close to crossing below the zero line for an outright sale message.
In this weekly Japanese candlestick chart of JNJ, below, we can see a weakening and potentially vulnerable setup. Prices show a long rise but in recent months a lower high in December versus August. Prices are testing the rising 40-week moving average line. The weekly OBV line shows a long rise and only the start of a turn lower in January. The MACD oscillator surprisingly shows weakness from September as the strength of the advance faded rapidly.
In this daily Point and Figure chart of JNJ, below, we can see a downside price target of $156.
In this weekly Point and Figure chart of JNJ, below, we can see an upside price target of $205. If our daily Point and Figure chart is correct and there is a decline to $156 or lower then this weekly chart should generate a bearish objective.
Bottom line strategy: The decline in the stock market in recent weeks has not spared too many stocks and that is worrisome. JNJ has been in a longer-term uptrend but that may not be enough to keep the rally going. I have no special knowledge of what JNJ may report Tuesday but I would not be a buyer ahead of the news. Avoid the long side for now.
