The question on everyone's mind: Will JOHNSON & JOHNSON breakout?

Our stock screener has flagged JOHNSON & JOHNSON (NYSE:JNJ) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:JNJ for potential movement.

What is the technical picture of NYSE:JNJ telling us.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Taking everything into account, JNJ scores 8 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, JNJ is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• JNJ is part of the Pharmaceuticals industry. There are 215 other stocks in this industry. JNJ outperforms 78% of them.
• JNJ is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so JNJ is performing more or less in line with the market.
• Looking at the yearly performance, JNJ did better than 78% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• In the last month JNJ has a been trading in a tight range between 166.06 and 175.97.
• Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of JNJ

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:JNJ this score is currently 8:

Besides having an excellent technical rating, JNJ also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 178.88. Right above this resistance zone may be a good entry point.

Trading setups like NYSE:JNJ

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.