Trading Idea - Entry Levels for JNJ

Published on Friday, 16 July 2010 20:08 Written by Christopher Lynn

New York, July 16th (TradersHuddle.com) - Shares of Johnson and Johnson (NYSE:JNJ) are trading very close to calculated support at $57.55 with current price action closing at just $59.44 places the stock price near levels where traders will start paying attention.

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, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to JNJ's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $61.73 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.