Johnson & Johnson (JNJ) is weak Wednesday and it is helping to drag down the Dow Jones Industrial Average (DJIA). Let's put away the band-aids and take a serious look at the charts and indicators.
In this daily bar chart of Action Alerts PLUS holding JNJ, below, we can see how prices were stalled in the past three months. Prices gapped below the 50-day and the 200-day moving average lines Wednesday. The April low and nearby support was broken.
The daily On-Balance-Volume (OBV) line looks like it has rolled over this month and the Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line on the downside for an outright sell signal.
In the weekly bar chart of JNJ, below, we can imagine the chart updated with today's price action. JNJ would be below the cresting 40-week moving average line.
The weekly OBV line has been making lower highs and lows since the middle of 2017 and it looks like that will continue. The weekly MACD oscillator is poised to cross to the downside for a take profits sell signal.
In this Point and Figure chart of JNJ, below, a downside price target of $120 is being projected but further declines cannot be ruled out.
Bottom-line strategy: It looks like JNJ is heading still lower and if the $120 area is broken then we could see a major decline in the stock.