Despite Recent Rally, Pharma Giant Continues To Struggle: Here's The Trade
InTheMoneyStocks.com | Jan 16, 2019 01:17PM ET
I've been following Johnson & Johnson (NYSE:JNJ), which plunged last month on news that the company could still have issues regarding its popular baby-powder product. On December 13, 2018, the shares traded as high as $148.58 a share. On December 24, JNJ traded as low as $121 before finding a near-term bottom with the major stock-market indexes. Today the stock is trading at $128.42 a share. So while it has certainly bounced higher, JNJ has not come close to its December 13 high. In fact, the stock is now signaling weak relative strength. Traders should note that the issue is still trading below its important 200-day moving average, which is actually a sign of weakness.h3 Watch This Support/h3
If the stock breaks below its key $121 support level it will trigger another sell signal. Johnson & Johnson's next major support level lies around the $113 area. Right now, JNJ is hanging in there, but this is a stock that I will be watching closely.
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