Johnson & Johnson (NYSE: JNJ) is a stock in the pharmaceutical industry that researches and develops, manufactures, and sells various products in the healthcare field worldwide.
Johnson & Johnson has been a set-it-and-forget-it stock in our grandparents’ era, and it’s still making the moves required to be one of the best blue-chip stocks to buy for 2020. However, weekly stock price action and supply and demand analysis tell us that Johnson & Johnson (NYSE: JNJ) is bound to have a bearish correction. Take a look at the weekly timeframe technical analysis for Johnson & Johnson (NYSE: JNJ) below. We can see how, after breaking all-time highs around $158 per share, JNJ started to drop, dropping for almost a month, trying to pull back to a strong weekly imbalance much lower around $123 per share.
A diversified stock portfolio should have JNJ as one of its stocks. Johnson and Johnson stock forecast 2020 is working on a vaccine candidate for SARS-CoV-2 and should begin phase one human clinical trials by September 2020. In the meantime, the stock should not be bought now as we expect a much bigger bearish correction. Stock intraday traders and swing trades might see great opportunities to shorten the stock to a weekly imbalance of around $123. Bear in mind that the long-term bias for JNJ is bullish.
This stock analysis forecast is done only on a single timeframe which is not enough to make a trading decision. You can use other strategies to short JNJ or even sell option premium using option selling strategies. This supply and demand and price action analysis can give you a starting point on which direction you should take your trades.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name, and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.
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