Candlesticks - Bearish Engulfing JNJ

Published on Thursday, 22 July 2010 03:09 Written by Christian Paolinetti

New York, July 22nd (TradersHuddle.com) - Shares of Johnson and Johnson (NYSE:JNJ) ended the trading session lower by $1.46 or -2.49% from its previous close. JNJ's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Johnson & Johnson (NYSE:JNJ) manufactures health care products and provides related services for the consumer, pharmaceutical, and medical devices and diagnostics markets. The Company sells products such as skin and hair care products, Tylenol, pharmaceuticals, diagnostic equipment, and surgical equipment in countries located around the world. The consumer healthcare products company was founded in 1886 and is based in New Brunswick, NJ.

JNJ's current stock range is defined by calculated support defined at $57.55 and by the resistance level at $61.73, which should be used by traders planning their trades.

Traders wanting to establish a position in JNJ stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current JNJ shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: