Entering text into the input field will update the search result below

JNJ Is Near To End A Wedge Structure In Short Term

Mar. 22, 2021 6:24 PM ETJohnson & Johnson (JNJ)
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Seeking Alpha Analyst Since 2017

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 78 instruments including Forex majors & crosses, Commodities, Equity Indices, Stocks, ETFs and Crypto-currencies. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos and Trading Setups.

Since the crash of March 2020, all stocks have tried to recover what they lost and JNJ was no exception. Johnson & Johnson did not only recover the lost, but It also reached historic highs. Now, we are going to try to build a wedge from the March 2020 lows with a target above $176.

In the chart we can clearly see that after the fall of March 2020, JNJ had a strong and rapid recovery. We call this movement wave (1). The for several months it was within a large range forming a double correction until it continued with the rally. This range was the wave (2). (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory).

JNJ Daily Chart

JNJ continued the rally breaking the peak of the wave (1) indicating that we are already on wave (3). This wave (3) had its highest point at 173.69 where JNJ was rejected by the market. This rejection did another double correction structure and overlaps the wave (1) zone to end the wave (4). This fact and the long time that wave (2) took to complete, gives us the guideline to determine that the structure that JNJ is building is a diagonal.

We are currently in the last swing to complete the diagonal. This swing should be an impulse as happened with waves (1) and (3). Wave (1) of this new impulse seems finished and we are correcting on wave (2). This wave (2) should bounce off from 155-157 zone to continue the bullish move. This would lead us to look for 3 more swings to complete the wave (5) and the diagonal that began in March 2020. This diagonal should end the structure within the area of ​​176 - 179 dollars per share.

Source: JNJ Is Near To End A Wedge Structure In Short Term

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.