It confirmed Thursday's bull signal today by continuing to trade beyond the 20-day price channel. However, JNJ's chart isn't yet sufficiently bullish to support a trade.
The price peaked on Sept. 24 at $108.77. Today's high so far is $108.18, slightly short of a break beyond resistance.
Until that resistance level is pierced, and decisively so, JNJ can be interpreted as engaging in a counter-trend upward correction within a downtrend.
So I won't take the trade, and plan no further analysis from Thursday's market session.
-- Tim Bovee, Portland, Oregon, Oct. 31, 2014
My shorter-term trading rules can be read here. My longer-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here. My very short term volatility trading rules can be read here
Tim Bovee, Private Trader tracks the analysis and 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.
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