Swing Trade Idea (JNJ) – June 08, 2023
Our bearish trade for Thursday, June 8th is Johnson & Johnson (JNJ). JNJ is part of the Health Care Sector, which has performed at 1.06% over the last week, with JNJ overperforming relative to its sector at 2.23% over the same period.
JNJ found support at a long-term key support level at $152, from where it is bouncing higher. It recently broke above a downtrend channel, indicating that further upside can be expected. The 1M trend has recently turned neutral from bearish and we believe that further upside can be expected, with the next area of resistance at $166.
As a close, if JNJ were to trade below $153 for multiple days, this would invalidate our analysis and will consider cutting losses on the trade. We also will also consider cutting losses on this options trade if the value of the vertical spread moves above $6.90.
