Johnson & Johnson (JNJ) Stocks Elliott Wave Technical Analysis
On April 24, 2024, we conducted a comprehensive Elliott Wave analysis on Johnson & Johnson (Ticker: JNJ), focusing on the dynamics revealed through the daily and 4-hour chart studies. Our analysis highlights crucial patterns and potential future movements, offering valuable insights for traders and investors engaged in JNJ’s stock.
JNJ Elliott Wave Technical Analysis
Johnson & Johnson (JNJ) Daily Chart Analysis
Function: Counter Trend
Mode: Corrective
Structure: Complex
Position: Intermediate (2)
Direction: Downside in wave Z
Detailed Analysis
In the current market context, Johnson & Johnson's stock exhibits a downside movement as part of wave Z. This move is pivotal as we closely analyze the 0.618 Fibonacci retracement level between waves Z and X. Market watchers anticipate a potential support zone at this critical juncture. Should JNJ hit resistance at the 150 price level, further declines might be imminent. This scenario suggests an important watchpoint for traders and investors focusing on short-term price movements and support-resistance dynamics.
JNJ Elliott Wave Technical Analysis – Daily Chart
Johnson & Johnson is observed in a counter-trend phase characterized by a complex corrective structure, specifically placed in the Intermediate wave (2). Currently, the stock is progressing through the downside movements of wave Z. Key observations indicate the stock has reached the Fibonacci retracement level of 0.618 Z vs. X, signalling a potential area for finding support. Should resistance solidify at the medium level of $150, further downside could be expected as the pattern completes.
Johnson & Johnson (JNJ) 4-Hour Chart Analysis
Elliott Wave Technical Analysis Overview
Function: Trend
Mode: Impulsive
Structure: Motive
Position: Wave (iv) of {c}
Direction: Downside into wave (v)
Detailed Analysis
On a shorter time frame, the JNJ 4-hour chart demonstrates a clear impulsive mode indicative of a strong market trend. Currently, the stock is progressing through wave (iv) of {c}, which is anticipated to lead into a decisive wave (v). Given the sharp nature of wave (ii), there is an expectation of a sideways or consolidation phase in wave (iv) near the 150 price level. This development could serve as a precursor to a subsequent downward thrust, emphasizing the need for traders to remain vigilant around these levels for potential trading opportunities.
Trading Insights and Forecast
Both the daily and 4-hour charts of Johnson & Johnson, analyzed through the lens of Elliott Wave theory, suggest a predominant downside trajectory. Traders employing this analytical approach should prepare for potential fluctuations around key price levels, particularly around the 150 mark, which appears to be a significant pivot point in both timeframes.
Traders should monitor these resistance zones closely, as the stock's interaction with these levels could offer clues about the future direction and momentum. Especially, the convergence of technical indicators at these levels might yield actionable insights, facilitating informed trading decisions.
Technical Analyst: Alessio Barretta
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Conclusion
Elliott Wave analysis provides a structured way of understanding market trends and potential reversals. For Johnson & Johnson, current analysis on both daily and 4-hour charts suggests strategic monitoring of the 150 price level, which is expected to play a critical role in the stock's short-term price dynamics. As always, combining Elliott Wave analysis with other technical tools can enhance the accuracy of predictions and strengthen trading strategies.