Current trend

Shares of Johnson & Johnson, one of the world's leading retail holdings, have been actively growing for the third month in a row, adjusting to a long-term downtrend: during this time, the price has reversed from the 146.88 mark (Murrey level [-1/8]), returned to the framework of the main Murrey trading range and is currently testing its central mark of 162.50 (Murrey level [4/8]), consolidating above which will allow quotes to continue rising to 165.62 (Murray level [5/8]), 168.75 (Murrey level [6/8]).

The key for the "bears" is the reversal level of 156.25 (Murrey level [2/8]), below the central line of Bollinger Bands, at the breakdown of which the instrument may return to the lower border of the trading range at 150.00 (Murrey level [0/8]).

Technical indicators confirm the likelihood of continued growth: Bollinger Bands are directed upwards, MACD is increasing in a positive zone, and Stochastic's reversal downwards does not exclude the development of a decline, but its potential limited.

Support and resistance

Resistance levels: 162.50, 165.62, 168.75.

Support levels: 156.25, 150.00, 146.88.

Trading tips

Long positions can be opened above the 162.50 mark or after the price reversal around 156.25 with targets at 165.62, 168.75 and stop-losses at 160.60 and 154.50, respectively. Implementation period: 5–7 days.