Positive reaction to the earnings release for Johnson & Johnson
The key points from the above chart are:
- Positive reaction to the first-quarter results.
- There was above-average volume on the breakout above $61.00.
- A window which is a continuation pattern appeared on the candlestick chart.
- The window will act as support on any pullback.
- If the window is closed, it will nullify the near-term uptrend.
- The MACD is confirming the near-term uptrend.
- The 10-day moving average is confirming the uptrend.
- The 20-day moving average is confirming the uptrend.
- The near-term target is $65.00
- Support is $61.00 if the window is closed.
Beyond the cliff, dividends, M&A beckon for big pharma is a recent article from the Financial Post.
April 27, 2011 update: Johnson & Johnson is to buy Swiss medical devices maker Synthes Incfor 19 billion Swiss francs (US$21.59 billion) in its largest ever buy, boosting its surgical business and reshaping the wider industry.
May 27, 2011 update: J&J Now the “Best Biotech Play”, Says Goldman
Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.