JNJ - Support Confluence Can be Nice BuyHi Guys, the opinions expressed ere are of my own. This is not financial advise and i am not a financial advisor.
Okay lets jump right in!
This is on the WEEKLY timeframe. Since JNJ is a divi stock, this for me would be long term hold or swing.
Indicators:
1. 200 Week moving average (red line) - ABbreviation= (200 "WMA")
2. RSI
Historically, as you can see everytime JNJ comes down to the Red line, the 200 Week Moving Average, it has been majority of times a good place to buy.
Not only that we are hitting a support line that has held since January 2021. This is confluence, of 2 major supports, adding favor in my opinion to buy here.
I would wait for this weeks close on the weekly time frame to gauge at the condition of the candle. But generally, a bottom wick is a good sign and shows buying pressure.
The RSI is also in oversold territory. It can be that we go further indicating some more downward pressure. BUT looking at past history, it has always been a good opportunity to buy when RSI goes below the green line i drew.
Stop loss for me would be around 5% below the weekly moving average. Ofcourse price action CAN crashes below the 200 WMA like some of the situations in history for example my "eh". But thats why we protect ourselves with stop losses.
Anyway, tried to keep this simple. Hope this helps. Let me know what you think! Like, Comment, Follow!
Thanks
Disclaimer: The ideas expressed here are my own opinion, this is by no means financial advise. I am not a financial advisor. Just a student of the charts expressing!
