Mega Candle in Johnson & Johnson

2021년 12월 14일

Johnson & Johnson is often a dull stock, but it had some exciting price action yesterday.

The health care giant dropped 1 percent in the initial seconds of trading, undercutting Friday’s low. Buyers immediately came out of the woodwork, driving the stock to its highest close in over three months. The result was a large bullish outside candle.

Next, the surge planted JNJ back above its 200-day simple moving average (SMA) for the first time in almost as long.

Third, the recent bounces near $158 created something of a W-shaped double bottom.

Fourth, safe-havens like health care have gained relative strength in the last week as investors brace for a hawkish Federal Reserve.

JNJ has also enjoyed some interesting news lately. Quarterly results on October 19 were better than expected. It followed on November 12 with a plan to split into two companies. That’s potentially a big deal because spinoffs can allow multiple expansion as investors assign different valuations to various business lines.

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