Johnson & Johnson rallied above a rising trend-line for more than two years (dashed line), had a correction and found support near $90 (U.S.) (A – dotted line) and now appears ready to resume the up-trend (B). A sustained rise above $106-$107 would confirm this. Behaviour indicators including the 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the positive status. Only a decline below $98-$99 would be negative. A rise above $106-$107 would signal initial Point & Figure targets of $114 and $119. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.