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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.

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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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About the Authors
Senior Technical Analyst at Phases & Cycles Inc.

Monica Rizk, Senior Technical Analyst, has a Bachelor's degree in Business Administration and completed the Canadian Securities Institute course. She has been with Phases & Cycles since September 2000 and specializes in the research of Canadian and US stocks using Point & Figure as well as bar chart analysis. More

President of Phases & Cycles Inc.

Ron Meisels, President, Phases & Cycles Inc., has been active as an Analyst since 1971. He was Vice President and Director of Technical Research of Nesbitt Thomson (now BMO Nesbitt Burns) from 1982 to 1990. He was ranked among the top three technical analysts by Canadian Institutions for six consecutive years (Brendan Wood Survey). More

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