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Johnson & Johnson Pulled Back from 90.00 Level

Johnson & Johnson (NYSE:JNJ) had a very good start in 2013. In less than 6 months the price of the shares has rallied in a pretty straight trend more than 30%. This up move did not have any important correction. It is not unbelievable if we think that in April they reported earnings above expectations for 9 quarters in a raw.

Chart: JNJ, Dailyjohnson&johnson-signaling-a-short-term-reversal-22.05.2013

Looking at the chart we will see that this uptrend has 3 important supports. The 9 and 21 EMA, and the trend line. Right after it has hit the 89.99 the price was pulled back to 88.29. If this day will close around this price, a new bearish signal will appear.

The Shooting Star along with the negative divergence on the 56 days RSI could be a strong signal that the price action would reverse. If a corrective move will start, we can expect for the price to fall back to the nearest support at 85.88 (an old resistance).

Johnson & Johnson Pulled Back from 90.00 Level by