Listerine, Lubriderm, and BandAids for the Long Haul – Johnson & Johnson

• Posted by Greg Harmon
• on December 22nd, 2011

Johnson & Johnson’s stock price has been moving sideways since rising off of the August lows, but the price of this healthcare giant looks like it is poised to break out higher. Let’s take a look in 3 timeframes.

The daily chart above will provide the trigger. It is moving above a 5 month long symmetrical triangle today. It has a Relative Strength Index (RSI) that is rising off of the mid line while the Moving Average Convergence Divergence (MACD) indicator is positive, both supporting upside. It would be a lot more comfortable to enter as a long position though were it to clear the late October high. Not convinced? Well then look at the weekly chart below. The resistance at 65.00 is clearly

evident but what makes it more compelling is that the RSI and MACD are rising along with price as it approaches the resistance this time. It still needs to clear the trigger to compel a buy but the case is building. On the monthly chart the real picture emerges. Since the fall in 2009 the RSI has been

trending higher and bullish while the MACD has been consolidating in the recent 8 month bull flag. A break over 66.83 triggers the first measured move to 75.

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