Technical Analysis: Based on the latest data, JNJ shows strong bullish momentum with RSI(14) at 71.58 and Stochastic %K(14) at 94.03, both indicating overbought conditions. The stock is trading above all major moving averages (5,10,20,60,200-day SMAs), confirming the upward trend.
Price Targets for Next Week:
News Sentiment Analysis: Recent positive catalysts include:
Price Prediction for Next Week: Given the technical indicators and positive news flow, JNJ is likely to test the R1 resistance at $161.79. However, the overbought conditions suggest potential for a short-term pullback. The most probable scenario is:
Trading Recommendation: SELL Despite positive fundamentals, the extremely overbought technical readings (RSI>70, Stochastic>90) suggest high probability of a short-term pullback. Traders should consider taking profits at current levels and wait for a better entry point around the Fibonacci pivot ($157.50) or S1 ($153.21) levels.
The price of JNJ is predicted to go up 0.29%, based on the high correlation periods with MLGO. The similarity of these two price pattern on the periods is 98%.
JNJ
MLGO
The majority of J&J's near-term patent losses are for products that are hard to manufacture, which should reduce the intensity of generic competition.
Diverse healthcare segments help insulate J&J from downturns in the overall economy, offering a defensive growth opportunity with a steady and likely growing dividend.
Several of J&J's key next-generation pipeline drugs are specialty drugs that tend to carry strong pricing power as well as lower regulatory hurdles for approval.
Barclays
2025-01-28
Price Target
$159 → $166
Upside
+10.39%
RBC Capital
2025-01-23
Price Target
$181
Upside
+23.43%
Morgan Stanley
2025-01-23
Price Target
$175 → $163
Upside
+11.16%