2016-08-29 15:40:59

Johnson & Johnson, #JNJ [NYSE]
Health care, Production of drugs, USA

Financial performance:

Index –DJIA, S&P 500; Beta – 0.63;
Capitalization - 287.98 В; Assets profitability - 11.70%;
Revenue - 15.41 B; Average volume – 9.22 М;
P/E - 21.23; ATR – 1.81.

Analytical review:

  • The company has the biggest capitalization in the public health sector among the issuers listed on the US stock market.
  • The issuer underwent correction last month. Johnson & Johnson's stock fell by over 5.5%. Last week, the company retained a local support level of 118.45 USD. Its global uptrend may be continuing.
  • The company registered strong fundamental data. The corporate report on the second quarter of the fiscal year 2016 was published in late July. The pharmaceutical giant announced that the net profit had grown 4% to 18.48 billion USD. EPS (earning per share) equalled 1.74 USD while analysts had expected a value of $1.67 per share. Profitability and marginality factors exceed the average value in this sector.
  • Investment banks Deutsche Bank and UBS upgraded Johnson & Johnson's ranking and updated the target cost of the company's stock to 137-142 USD in late July.
  • Technical analysis suggests that the issuer's ascending trend may continue. One of the strongest technical patterns - price and MACD divergence - has formed on the H1 chart.

Summary:

  • The company's recent report proves that the company's management has been working efficiently. The company's revenue and net profit grew, exceeding market expectations. The pharmaceutical giant's growth potential is quite significant. Technical analysis points to the termination of a correctional movement. Large investment funds forecast a positive trend for the company's shares.
  • Thus, we expect that Johnson & Johnson's quotes will be rising in the nearest future.

Trading tips for Johnson & Johnson's CFDs

Key levels:
Support levels: 116.15 USD, 115.40 USD, 114.95 USD
Resistance levels: 117.20 USD, 117.65 USD

Medium-term trading, H1
The issuer is currently trading near the demand zone of 118.45-119.00 USD. Once this zone steadies and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 120.50 USD, 121.50 USD and 122.50 USD , with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1


Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 118.70/119.65 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15: