Johnson & Johnson collects profits - Analysis - 02-11-2022

Johnson & Johnson's stock (JNJ) fell in the last session after agreeing to acquire Abiomed (ABMD) in a full-cash deal valued at $16.6 billion, with Abiomed's stock rallying 50%, becoming the best performer on S&P 500, while J&J's stock fell 0.51%, or 88 cents, settling at 173.09, with trading volumes approaching 7 million shares, similar to recent 10-day averages.

Technically, the stock declined after the current resistance of 173.60 held its ground, amid active profit-taking, while the stock gathers momentum to breach that resistance, as it also vented off overbought saturation in the RSI with negative signals out of them, while the stock is buoyed by a positive pattern that formed recently, the Falling Wedge pattern, with positive support from the 50-day SMA.

Therefore we expect the stock to return higher, targeting the resistance of 181.75, provided the initial resistance of 173.60 was reliably pierced. 

Expected trend for today: Bullish