Current trend

Shares of Johnson & Johnson, one of the leading retail holdings, are adjusting at 160.00.

Yesterday, it became known that a subsidiary, Red River Talc LLC, which was created to settle the case of low-quality talc, filed for bankruptcy for the third time, enlisting the support of 83.0% of the plaintiffs. According to the legislation, this requires that more than 75.0% of the plaintiffs agree to the amount of compensation, which in this case amounted to about 10.0 billion dollars. The remaining part of the dissenters filed a counter-request to reject the bankruptcy, considering that the compensation was too small. However, even if the court rejects the bankruptcy, the company can file the documents again. Thus, it is unlikely that the amount of compensation will increase, therefore the costs and risks of this process will have almost no effect on the financial position of Johnson & Johnson.

On October 15, the financial report for the third quarter will be published: analysts expect revenue of 22.13 billion dollars, up from 21.4 billion dollars over the same period a year earlier, and earnings per share (EPS) may reach 2.18 dollars, down from 2.66 dollars last year.

Support and resistance

On the D1 chart, the asset is adjusted, holding within the ascending channel with the boundaries of 170.00–157.00.

Technical indicators slow down the buy signal, preparing for a reversal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO histogram forms corrective bars.

Support levels: 159.00, 153.20.

Resistance levels: 162.60, 168.10.

Trading tips

If the asset continues to decline and the price consolidates below the support level of 159.00, one can open short positions with a target of 153.20 and a stop-loss of 162.00. Implementation period: 7 days and more.

In the event of a reversal and continued global growth of the asset, as well as price consolidation above the resistance level of 162.60, one may open long positions with a target of 168.10 and a stop-loss of 160.00.