Earnings Play: Johnson & Johnson
Jason Lubin July 15, 2020 4:23 PM
On Thursday Johnson & Johnson is expected to release 2Q earnings.
On Thursday, Johnson & Johnson (JNJ) is expected to report second quarter EPS of $1.50 compared to $2.58 a year ago on revenue of approximately $17.6B vs. $20.6B last year. Johnson & Johnson is the world's largest and most diverse healthcare products company and on July 14th, Janssen Pharmaceutical, a subsidiary of the company, received approval from the U.S. Food and Drug Administration (FDA) for Tremfya, a treatment for adult patients with active psoriatic arthritis, according to Bloomberg.
From a technical point of view, on a daily chart, Johnson & Johnson's stock price has just broken out to the upside of a descending channel pattern that began to form in late-April after the company reached a record high of $157.00. The RSI is showing upward momentum after breaking to the upside of a bearish trend line. Price appears to be headed to retest the 153.00 resistance level and since we are still in a bull market, the bias on stocks remains bullish. If price can reach $153.00 it would clear a path towards retesting the all time high of $157.00. If price can not hold above the upper trend line of the descending channel pattern we could see price fall back to the $143.00 support level. If price re-enters the descending channel it may continue to decline down to $137.00.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.