JNJ has an Incomplete Bearish Sequence Possible Bull Trap Ahead

February 13, 2024 By EWFLuis

Johnson & Johnson (JNJ) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average, and the company is ranked №36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue.

JNJ Daily Chart October 2023

In the last analysis, we called 3 waves more to the downside to end a double correction structure ((W)), ((X)), ((Y)). The stock reacted lower from a blue box area ending wave ((X)) and starting wave ((Y)). Then we expected to finish a wave (A) as a leading diagonal, bounce in wave (B) and continuing lower in ©. As price actions stays below 175.97 high, we are looking to keep lower prices. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory).

JNJ Daily Chart February 2024

Down from 175.97 high, JNJ ended wave A at 157.35 low and wave B made a running flat correction completing at 159.27 high. Then, market continued lower to end the first 3 swings of a double correction at 144.95 low as wave C of (W) and wave (W). The stock rallied since late October 2023 starting connector (X) pullback. It built a leading diagonal structure finishing wave A at 163.58 high and actually JNJ is developing wave B correction. This wave B could complete in 152–149 area and the market should break higher in wave C to end wave (X) before resuming to the downsidea again.

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Source:https://elliottwave-forecast.com/stock-market/johnson-jnj-bearish-sequence-bull-trap/