New York, March 11th (TradersHuddle.com) - Shares of Johnson and Johnson (NYSE:JNJ) closed the trading session at $64.29 placing the price action in a very tight range, given that calculated support is set at $62.22 and the calculated resistance based on an algorithm of peaks and troughs is set at $65.41

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 stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that developed.

Traders wanting to establish a position should place close attention to JNJ's price action, as any movement outside its predefined range of $62.22 and $65.41 could grab the attention of momentum buyers, looking for a big movement in the price of the stock. Traders need to be aware that tight range resolution works both ways, hence, a move below support at $62.22 could spark above average selling. A tiered approach can be a good way to approach starting a position in JNJ's, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.