Earnings Play: Johnson & Johnson

On Thursday Johnson & Johnson is expected to release 2Q earnings.

Uptrend 1

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

More from Earnings

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.