Market

Johnson & Johnson Slumps On Covid-19 Vaccination Concerns

Johnson & Johnson
JNJ
set its all-time intraday high of $179.89 on August 20 on positive thoughts about its Covid-19 vaccine. Since then, consumers became concerned about the strength of the company’s booster shot. The vaccines available from Pfizer
PFE
and Moderno are deemed to be effective against the ferocious delta variant.

Shares of JNJ fell so quickly that its weekly chart is now negative.

The stock is reasonably priced with a p/e ratio of 18.83% with a dividend yield of 2.47%, according to Macrotrends. JNJ has beaten earnings-per-share estimates for at least 36 consecutive quarters.

The Daily Chart for Johnson & Johnson

Johnson & Johnson has been above a golden cross for more than 52 weeks. A golden cross occurs when the 50-day simple moving average rises above the 200-day simple moving average. This happened on December 24, 2019, at $145.93.

At the far left of the chart, note that JNJ tracked around its 200-day simple moving average, which was $144.70 on November 30, 2020. This was a buy level. The stock has been above this moving average since then with the average now a support at $164.19.

The upper most horizontal line is the monthly risky level for September at $176.20. The two horizontal lines at the center of the chart are the quarterly and semiannual value levels at $160.08 and $158.61, respectively. Above the chart and not shown is the annual risky level at $184.01.

The Weekly Chart for Johnson & Johnson

The weekly chart for Johnson & Johnson ended last week negative. The stock is below its five-week modified moving average at $171.94. The stock is well above its 200-week simple moving average or reversion to the mean at $143.22. The 12x3x3 weekly slow stochastic reading is declining at 73.56.  

Trading Strategy: Buy JNJ on weakness to its quarterly and semiannual value levels at $160.08 and $158.61. Reduce holdings on strength to its monthly risky level at $176.20.

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