I hope you also got into this trade as JNJ is up $9 in three trading days on declining volume.
The MACD has turned sharply bullish and the RSI is trading up.
JNJ is one of the few stocks that I have recommending that has broken through the resistance on the move up. This is making me look for an exit point here. JNJ broke through the $135 resistance level and is trading in a tight range as a Doji is forming here right at the 200 day moving average.
The upside is tight as the 50 day is at $139 and the next level is at $143.
Earnings is coming up on April 14th.
Positives
- Coronavirus vaccine play
- Valuation - Fair Value is $191.00 and the current price is $129.15
- JNJ is trading below fair value by more than 20%.
- JNJ's short term assets ($45.3B) exceed its short term liabilities ($36.0B)
- MACD as crossed Bullish
- Dividend Yield of 2.90%
Problems
- Long Term Liabilities: JNJ's short term assets ($45.3B) do not cover its long term liabilities ($62.3B).