Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
The New Jersey-based Healthcare company, Johnson & Johnson (NYSE: JNJ), facilitates the research and development, manufacture, and sale of products in the healthcare field. The company operates through different fields such as Consumer Health, Pharmaceutical, and MedTech. The JNJ stock is considered a large-cap stock with a market capitalization of $368B.
Some Highlights of the Q3 2023
The latest report on deals shows that in the third quarter of 2023, the total deals amounted to $21.4 billion, an increase of 6.8% compared to the same period in 2022. The growth of functional deals without considering currency exchange was 6.4%, with currency exchange having a positive effect of 0.4%. The United States saw an increase of 11.1% in deals, while regions outside the US reported a growth of 1.6%.
The Cost Cut
The company reduced selling, marketing, and regulatory expenses by 40 basis points (0.40%) but invested heavily in research and development. It allocated $3.4 billion or 16.2% of the sales in this quarter. Research and development expenses decreased by 1.2% basis, the reason was given to portfolio prioritization. The company also faced IPR&D weaknesses of $206 million in the third quarter.
Technical Analysis and Prediction of the JNJ Stock Price
Since JNJ is a large-cap stock, the growth hasn’t been quite impressive for 2 years. The JNJ stock price has given a return of -6.5% since October 2021. Bulls reached a high of $179 in August 2021 and the RSI reached its overbought level, causing price correction. When the stock took the support of the $158 level, it rose again. This time, it broke the past high by reaching $186. The stock has been in a consolidation phase since then.
Present and Possible Future
At the press time, the JNJ stock price is in a downtrend. It is currently trading at the level of $153 after coming back from the support level of $150 as the bulls are trying to push the price towards its immediate resistance of $159. The second resistance is situated at $164. The EMAs seem to be posing a challenge.
The 50-day EMA is at $159 and the 150-day EMA is at $162. They have made a bearish crossover indicating a weak strength in the price. However, if the bulls surpass the first resistance, the trend may reverse as the downtrend line will be broken. If things go south, the price will fall to the 2nd support of $144.
Conclusion
Johnson & Johnson (NYSE: JNJ) is a multinational healthcare company. It has reported some positive highlights in its recent quarter 3 earnings report. The JNJ stock price is trading at its support level and it is expected to make a high.
Technical Levels
- Support: $153, and $144
- Resistance: $159, and $164
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/22/jnj-stock-price-investors-alert-stock-is-reclaiming-its-support/