Watch These Johnson & Johnson Price Levels After Stock’s Post-Earnings Pop

Johnson & Johnson (JNJ) shares lost ground Thursday after soaring yesterday amid investor optimism about the company’s better-than-expected earnings and full-year outlook.

The healthcare giant also slashed its tariff cost forecast, saying it now expects about $200 million in import levy-related costs this year, down from its prior projection of $400 million. The outlook soothed investors’ concerns about what impact Washington’s trade policies would have on the company after President Donald Trump recently said that pharmaceutical tariffs could be as high as 200%.

The drugmaker said its portfolio and pipeline position it for elevated growth in the second half of the year, adding that it anticipates approvals and submissions across a range of therapeutic areas.

J&J shares fell 1% to close today’s session at around $163, after surging 6% on Wednesday to pace Dow Jones Industrial Average advancers. The stock has risen 13% since the start of the year, outpacing the Dow’s gain of less than 5%.

Below, we break down the technicals on J&J’s weekly chart and identify price levels worth watching out for.

Close Above Key Moving Averages

Although the 50-week moving average (MA) crossed below the 200-week MA in late 2023 to form an ominous death cross, J&J shares have remained mostly rangebound since that time. However, more recently, the price rallied above both of these moving averages and a symmetrical triangle in Wednesday’s trading session.

While the relative strength index confirms a positive shift in momentum, yesterday’s jump occurred on lackluster volume, indicating that larger market participants may remain on the sidelines.

Let’s point out crucial overhead areas on J&J’s chart to watch and also identify a couple of major support levels worth monitoring during future retracements.

Overhead Areas to Watch

Upon further buying, Investors should monitor how the price responds to the $168 area. This level may provide overhead resistance near prominent peaks in September last year and March this year that touch a trendline extending back to February 2021.

A decisive volume-backed breakout above this area could trigger a rally toward $180. Investors who have accumulated shares at lower prices may look for exit points in this location near notable peaks that formed in the chart in August 2021 and December 2022, both of which lie just below the stock’s all-time high.

Support Levels Worth Monitoring

During future retracements in the stock, investors should monitor the $155 level. This area, which sits just below the 50-week MA and the symmetrical triangle’s top trendline, may encounter support near a horizontal line that links a range of corresponding trading activity on the chart stretching back to the April 2020 peak.

Finally, a deeper pullback in J&J shares could see the price revisit lower support around $145. Investors may look for buying opportunities in this region near several troughs that developed on the chart between October 2023 and January this year, a level that marks the lower level of the stock’s trading range over that period.

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As of the date this article was written, the author does not own any of the above securities.