Approaching Resistance - JNJ

Published on Friday, 16 July 2010 05:52 Written by Christian Paolinetti

New York, July 16th (TradersHuddle.com) - Shares of Johnson and Johnson (NYSE:JNJ) are trading very close to calculated resistance at $61.73 with the current price action closing at just $60.26 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $57.55 and by the resistance level at $61.73, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for JNJ, as the stock is well above support, however, as the stock pulls back towards $57.55 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $61.73 then traders will get an opportunity to enter JNJ stock by establishing a position as the stock moves to a higher range.