Johnson & Johnson (JNJ) – 11-13-2009

November 14, 2009 at 3:59 am · Filed Under Bullish, Value 

JNJ Daily ChartEverybody’s heard of Johnson & Johnson, although they probably make a whole lot of things that you don’t know about.  It’s a pretty slow and boring stock, but in some cases that’s what you’re looking for.  There was a false breakout in October the day before earnings came out, but other than that the channel has been pretty solid over the past few months.  You can play the channel either as a long term low risk entry or as a swing trade (I like vertical spreads in this case).  Or you can also just add it to the watch list and wait for a breakout. 

Triggers

  • Around $59 – Swing trade or position trade long with close stop
  • Over $62 – Breakout long
  • Under $59 on a general market downturn – Look for new value entry points
  • Under $59 while market is still going up – Consider short

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