Current trend

The shares of Johnson & Johnson, one of the leading retail holdings, are confidently increasing in value. During the month, the price reversed from 146.88 (Murrey level [3/8]), moved into the positive part of the Murrey trading range, and is now close to its upper limit of 162.50 (Murrey level [8/8]). Consolidation above will allow it to reach the reversal zone of 165.62 (Murrey level [ 1/8]) and 168.75 (Murrey level [ 2/8]). In case of a breakdown of 153.12 (Murrey level [5/8]), supported by the middle line of Bollinger bands, a decline to the targets of 146.88 (Murrey level [3/8]) and 143.75 (Murrey level [2/8]) is likely.

Technical indicators reflect the continuation of the upward trend: Bollinger bands are directed upward, and the MACD histogram is increasing in the positive zone. Stochastic has entered the overbought zone, which does not exclude a limited correction.

Support and resistance

Resistance levels: 162.50, 165.62, 168.75.

Support levels: 153.12, 146.88, 143.75.

Trading tips

Long positions may be opened above 162.50, with the targets of 165.62, 168.75, and stop loss of 160.30. Implementation period: 5–7 days.

Short positions may be opened below 153.12, with the targets of 146.88, 143.75 and stop loss of 155.20.