JNJ Close to 50 and 200 Day Moving Averages

Published on Friday, 05 March 2010 18:56 Written by Christopher Lynn

New York, March 5th (TradersHuddle.com) - Shares of Johnson and Johnson (NYSE:JNJ) closed the trading session at $64.04 near its 50 day and 200 day moving averages currently set at $63.8246 and $60.8424 respectively. JNJ's price action is above these important levels, which could translate into a trading opportunity.

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.

Although the price action is above important moving averages, it's important to highlight that the 50 day moving average is currently above the 200 day moving average, signaling that the stock is not technically broken from the long side and buying the dip strategy might be the best setup out there.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $62.22 and calculated resistance at $65.41. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

If traders want to establish a position on JNJ need to place special attention to the stock price action and establish a position as close to the moving averages as possible. Also traders need to consider the latest price action, via the stocks current range defined by the peaks and troughs algorithm, not forgetting that if the stock had a wild move outside its range, it would certianly take a few days to establish support and resistance.