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(Pat Wellenbach)
(Pat Wellenbach)

What the Charts Say

Bullish on Johnson & Johnson Add to ...

Johnson & Johnson had a sharp decline from $72.76 in 2008 to $46.25 in 2009 (A-B) followed by a recovery rally to $65.95 (C). The stock then traded in a wide, rising channel between $57 and $67 (dashed lines).

In mid-2011, the stock settled in a horizontal trading range between $61 and $66 for about one year (dotted lines). The recent rise to $69.75 (D) pierced above the top of this range to signal higher targets.

Only a decline below about $65 would be negative. Point & Figure measurements provide targets of $79 and $89. The large trading ranges (dashed and dotted lines) support higher targets.

Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.

Chart source: www.decisionplus.com

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Follow on Twitter: @RonsBriefs

  • Johnson & Johnson
  • Updated July 21 3:44 PM EDT. Delayed by at least 15 minutes.

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