Stock of the day: Johnson & Johnson
30 January 2025
Today, we take a closer look at Johnson & Johnson (JNJ), which I previously analyzed in mid-January with a positive outlook. Since then, the stock has delivered on that optimism, having an amazing performance last week and continuing its momentum this week. However, to gain a broader perspective, let’s turn to the weekly chart for long-term analysis.
On the weekly chart, JNJ remains within a long-term descending channel pattern, a structure that typically leans bearish. Despite this broader downtrend, recent price action suggests a shift in momentum. The stock recently avoided testing the lower boundary of the channel and instead bounced from a key horizontal support, marked in blue. This successful defense of the support level is a positive sign, indicating buyer strength at this level.
With this clear bounce off support, the short-term sentiment is bullish, and the price is likely targeting the upper boundary of the descending channel. As long as the price holds above the blue support, the positive outlook for JNJ remains intact. Traders should keep an eye on how the stock behaves as it approaches the upper resistance of the channel for further confirmation of a potential breakout or a possible reversal.