JNJ Watch

Health care company Johnson & Johnson (JNJ) has moved to bull phase on three key signals as it breaks above the 20-day simple moving average. Even so, the stock has been downtrending since April and there's no way to say yet whether or not an uptrend has begun

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
JNJ $59.30

Person's Proprietary Signal moved to bull phase on Friday, and was followed today by the parabolic sar and the macd.

On the Person's chart, the preceding 10-day bear phase brought the price down 4%. Since the bull signal was given, the price has risen as much as 3.4%.

JNJ today moved above the upper weekly pivot on the Person's chart, a positioning that shows the strength of the upward sweep but that also suggests the likelihood of a near-term retrenchment.

Person's Table (weekly pivots)

	pps	pps open	upper pivot	lower pivot
JNJ $59.30		$57.63 jul30	$58.60 -1.2%	$57.76 -2.6%

The 200-day moving average, now at $62.71, is another key level. A move above that would certainly indicate that an uptrend was in force. To set a higher high, JNJ must persistently pierce the $61.73 level attained on July 8. And from there, it would need a high low (above $56.86) and then yet a higher high in order to qualify as an uptrend.

Reversal Levels

• $62.71, +5.8%
• $61.73, +4.1%
• $ <== You are here.
• $56.86, -4.1%

One additional caution: All of this bullishness has been accompanied by declining volume, suggesting very weak conviction that the stock has a glorious bullish future ahead of it.

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.