Johnson & Johnson Looks Stretched
The powerful rally that began in mid-June has carried shares of Johnson & Johnson (JNJ) up to a very key level. This week, the stock is re-testing its 2011 highs near the $68.00 area. Shortly after peaking here one year ago, JNJ fell into a steep downward spiral. The stock left behind a multi-week top in mid-July before dropping more than 12% over the following three weeks. This area of resistance may prove difficult to break through at this point in the current bull move. With JNJ now stretched to the upside, a pullback is likely in the near term.JNJ Daily TradeStation View Chart » View in New Window »
At this week's highs Johnson & Johnson has gained just shy of 10% from its June lows. The powerful move began with a healthy upside reversal on the June 12 and then got a huge jolt the following day. On the June 13, JNJ surged more than 2% while attracting its heaviest volume in years. The massive accumulation wave, better viewed on the weekly chart, continued into the next week, pushing the stock to fresh 2012 highs. A brief consolidation during the last two weeks of June held support near the $66.25 area....252 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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