Shares of Johnson & Johnson, one of the world's leading retail holdings, have declined since the beginning of this year.
Currently, two main factors are putting pressure on quotes: lawsuits against the company and monetary uncertainty in the United States. Last week, a Philadelphia appeals court found the corporation guilty of wrongfully bankrupting one of its subsidiaries to avoid 38.0K lawsuits from affected customers alleging Johnson & Johnson's talc products cause cancer. This decision threatened to defend its interests in the courts of first instance for many years with corresponding financial losses in case of new negative verdicts, against which the issuer's papers fell sharply to annual lows of around 161.00. Then part of the losses was won back, but now quotes are falling again, as investors fear the tightening of the monetary policy of the US Federal Reserve against the backdrop of strong data from the labor market, one of the main sources of inflation, the weakening of which will require officials to keep interest rates at high rates much longer than previously thought.
The key "bullish" level is 162.50 (Murrey's level [4/8]), consolidation below which will give the prospect of further decline to 159.38 (Murrey's level [3/8]) and 156.25 (Murrey's level [2/8]). In the case of a breakout of 165.62 (Murrey level [5/8]), quotes may return to 168.75 (Murrey level [6/8], middle line of Bollinger bands).
Technical indicators confirm the continuation of the downward trend: Stochastic is reversing downwards, and the MACD histogram is increasing in the negative zone.
Resistance levels: 165.62, 168.75. | Support levels: 162.50, 159.38, 156.25.