JNJ Short Swing Opportunity

7 сент.

Here's my thoughts on a JNJ short opportunity that set up this week based on the following:

1) Parallel Channel Failed Breakout
2) Weekly Shooting Star Candlestick
3) Daily Evening Star Candlestick Pattern
4) Daily RSI Divergence
5) Completion of Wave 5 Elliott Pattern

Weekly Chart

On the weekly chart, there is a failed breakout of parallel channel with a shooting star formed at the end of the week inside the channel. Looking below at the daily chart, the top of the channel is now acting as resistance.

Daily Chart

On the daily chart, an evening star pattern was completed on Thursday, signaling a reversal in trend. There is also a divergence in RSI.

Elliott Wave

Still learning Elliott Wave but for the sake of sharing as I learn, it looks to be a completion of Wave 5 at the recent top. Will continue to watch to see the corrective wave pattern setup.


Additional Considerations
The the talc baby powder lawsuit will affect the stock price once the uncertainty is removed and the settlement is reached.
Earnings on 15 Oct.

Not financial advice.
Do your own research.