Johnson & Johnson's Golden Cross: A Bullish Prescription For Investors?

Author: Surbhi Jain | August 29, 2024 03:18pm

Johnson & Johnson (NYSE:JNJ) has just made a significant technical move, achieving a Golden Cross.

This technical pattern occurs when a stock’s short-term moving average crosses above its long-term moving average, indicating a potential shift from a bearish to a bullish trend.

Chart created using Benzinga Pro

For Johnson & Johnson, the stock’s 50-day simple moving average (SMA) of $155.36 has crossed above the 200-day SMA of $154.46, signaling strong upward momentum.

Golden Cross: What It Means For Johnson & Johnson Investors

A Golden Cross is considered a bullish indicator, suggesting that Johnson & Johnson stock could be entering a period of sustained upward momentum.

The stock currently trades at $164.43, comfortably above its eight-day SMA of $162.84, 20-day SMA of $161.09 and 50-day SMA of $155.36. These signals collectively point towards strong buying pressure and a bullish trend.

Short-Term Strength: Moving Averages Confirm the Trend

• 8-Day SMA: With Johnson & Johnson stock trading at $164.43 against the eight-day SMA of $162.84, the short-term outlook remains bullish.
• 20-Day SMA: The 20-day SMA stands at $161.09, also below the current price, reinforcing the bullish sentiment.
• 50-Day SMA: Johnson & Johnson stock’s 50-day SMA of $155.36 further supports the bullish narrative, as the stock remains well above this level.
• 200-Day SMA: The long-term trend remains bullish as the current price far exceeds the 200-day SMA of $154.46.

Read Also: Johnson & Johnson Seeks FDA Approval For Muscle Weakness Drug And Gears Up Showdown With Argenx and UCB

Fundamental Backing: Positive Catalysts Ahead

Johnson & Johnson’s recent submission of a Biologics License Application (BLA) to the FDA for nipocalimab, aimed at treating generalized myasthenia gravis (gMG), adds a strong fundamental tailwind to the stock.

The company's ongoing efforts to expand its oncology pipeline, combined with strategic acquisitions like V-Wave Ltd., are set to bolster its growth prospects.

Bullish Signals For Johnson & Johnson

With the Golden Cross in play and a series of fundamental catalysts on the horizon, Johnson & Johnson’s stock appears poised for continued strength.

The bullish technical indicators and the company’s strategic initiatives position Johnson & Johnson as a compelling opportunity for investors looking to capitalize on its upward momentum.

Read Next:

• Johnson & Johnson Aims New Policy For Hospital Payments Under 340B Drug Discount Program Related To Its Flagship Blood Thinner And Arthritis Drugs

Image: Shutterstock

Posted In: JNJ