JNJ completing correction wave C

Apr 17

JNJ
JNJ is in multi decade uptrend peaked at 187 – presumably end of major wave 5 and turned into Elliott ABC correction, where major wave (A) length is about 37. Per fibo relation major wave (C) should most probably end at 139.5, while intermediate wave ‘c’ – a unit of the major wave (C) might break the pattern bringing the end of correction to 133 and beyond until possible exhaustion of the major correction at higher fibo multiples.

At the same time the stock is trading in a downward channel with a lower bound standing now at 141, as well as built-in triangle pattern identifies target as of 137.5 (not very reliable)

Week chart: EMA 50 & 200 confirming death cross – it’s late coz in JNJ case SMA 50/200 confirmed it earlier at around 160 – i.e. the stock is already about to be bottomed. RSI in week chart is not yet oversold, while in day chart RSI is heavily oversold.


I would consider weekly and daily RSI to align getting both in oversold territory and open long at somewhere 139-141 with a price target being upper boundary of the current downward channel

Aug 26

Note

JNJ is now retesting local high of 165.7 , but for longs it would be quite weird to sell today as the ex-div date is tomorrow 8/27. Given recent news on EU drug approval etc. I would still consider it has all the potential to test the upper bound of the downward channel i.e. at around 168. Will see what happens then. Should it easily breakout, it might indicate a reversal of the downtrend, I would stay bullish in this case. GLTAL!

Aug 28

Trade active

Given how easily JNJ is closing a dividend gap today (although, didn't track in the past) I think it still has all the potential to reach PT 168. VIX is up today, tech is down -> JNJ gets support as a counter tech