Current trend

Shares of Johnson & Johnson, one of the leading retail holdings, are trading within a long-term downward channel. In mid-March, the price rose to its upper limit of 162.50 (Murrey level [8/8]), reversed, entered the negative part of Murrey’s trading range and is now testing the pivot point of 153.12 (Murrey level [2/8]), a breakout will allow the asset to reach the area of 150.00 (Murrey level [0/8]) and 148.44 (Murrey level [–1/8]). A consolidation above the key “bullish” level of 157.81 (Murrey level [5/8]), supported by the middle line of Bollinger Bands, will allow the quotes to grow to the area of 160.94 (Murrey level [7/8]) and 162.50 (Murrey level [8/8] ).

Technical indicators confirm the likelihood of continued decline: Bollinger Bands and Stochastic are directed downwards, and the MACD histogram is increasing in the negative zone.

Support and resistance

Resistance levels: 157.81, 160.94, 162.50.

Support levels: 153.12, 150.00, 148.44.

Trading tips

Short positions may be opened below the level of 153.12 with targets at 150.00, 148.44 and a stop loss around 155.00. Implementation time: 5–7 days.

Long positions may be opened above 157.81, with the targets at 160.94, 162.50 and stop loss 156.40.