Current trend

Quotes of Johnson & Johnson, one of the world's leading retail holdings, have been actively declining since mid-August: during this time, the price reversed from the upper border of the main Murrey trading range around 175.00 (Murrey level [8/8]), moved into its negative part and reached the area of 153.12 (Murrey level [1/8]), along the way, leaving the medium-term ascending channel.

This week, the quotes are trying to start a corrective growth, but for its serious development they will have to consolidate above the level of 159.38 (Murrey level [3/8]), supported by the central line of Bollinger Bands. In this case, the price may rise to 162.50 (Murrey level [4/8]) and 165.62 (Murrey level [5/8]). The key for the "bears" remains the level of 153.12, the breakdown of which will allow the quotes to fall to the lower border of the Murrey trading range at 150.00 (Murrey level [0/8]) and further into the reversal zone to 146.88 (Murrey level [-1/8]).

Technical indicators show the continued decline: Bollinger Bands are directed downwards, MACD is stable in the negative zone, and Stochastic has reversed up, which does not exclude the continuation of the growth to the area of 159.38, but it is unlikely to lead to a reversal of the downtrend.

Support and resistance

Resistance levels: 159.38, 162.50, 165.62.

Support levels: 153.12, 150.00, 146.88.

Trading tips

Short positions may be opened below the level of 153.12 with targets at 150.00, 146.88 and stop loss at 155.25. Implementation period: 5-7 days.

Long positions may be opened above the level of 159.38 with targets at 162.50, 165.62 and stop loss at 157.50.