Current trend

Shares of Johnson & Johnson, one of the leading retail holdings, are trying to resume growth within the medium-term uptrend after a three-week downward correction: the price reversed from the level of 159.38 (Murrey level [3/8]) and is now testing the central mark of the Murrey trading range at 162.50 (Murrey level [4/8]), supported by the central line of Bollinger Bands, consolidation above which it will allow quotes to strengthen the upward dynamics towards the targets of 168.75 (Murrey level [6/8]) and 171.88 (Murrey level [7/8]). The key mark for the "bears" remains 159.38 (Murrey level [3/8]), consolidation below which will ensure the resumption of decline to 156.25 (Murrey level [2/8]), 153.12 (Murrey level [1/8]), and 150.00 (Murrey level [0/8]).

Technical indicators do not give a clear signal: Bollinger Bands are reversing down and Stochastic turns up, while MACD is stable in the negative zone. Thus, while maintaining the medium-term upward trend, further growth of quotes in the near future seems more likely.

Support and resistance

Resistance levels: 162.50, 168.75, 171.88.

Support levels: 159.38, 156.25, 153.12, 150.00.

Trading tips

Long positions can be opened from the 162.50 mark with targets of 168.75, 171.88 and a stop-loss around 160.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 159.38 with targets of 156.25, 153.12, 150.00 and a stop-loss of 161.70.