Current trend

Shares of Johnson & Johnson, one of the leading retail holdings, are moving within a long-term downward channel: in mid-March, the price reached its upper limit, after which it resumed its decline. The quotes reversed at 162.50 (Murrey level [8/8]), entered the negative part of Murrey’s trading range, and dropped to the pivot point 143.75 (Murrey level [2/8]), after which they corrected upward to 150.00 (Murrey level /8]), supported by the middle line of Bollinger Bands. Consolidation below the key “bearish” level of 143.75 will allow the asset to decline to the area of 137.50 (Murrey level [0/8]) and 134.38 (Murrey level [–1/8]).

Technical indicators confirm the continuation of the downward trend: Bollinger bands are directed downwards, the MACD histogram is decreasing in the negative zone, and Stochastic has reached the overbought zone and may reverse downwards soon.

Support and resistance

Resistance levels: 150.00, 153.12, 156.25.

Support levels: 143.75, 137.50, 134.38.

Trading tips

Short positions may be opened below 143.75 or after a reversal at 153.12, with the targets at 137.50, and 134.38 and stop losses at 147.00 and 157.00, respectively. Implementation time: 5–7 days.