- Summary:
- Building on its new vaccine, Johnson & Johnson share price could be set for a major move to the north if the bullish pennant holds firm.
Johnson & Johnson CEO Alex Gorsky says the company’s coronavirus vaccine has started shipping and the first doses could be administered in as little as 2 days. The only vaccine that requires a single shot is being shipped and about 4 million doses of the vaccine could be out this week, according to Gorsky in a CNBC interview. A total of 100 million doses could be produced by June, he said.
The release of the third coronavirus vaccine boosted market sentiment on the stock, allowing for a 1% gain on the stock this Monday.
Technical Levels to Watch
The daily chart reveals a falling wedge pattern. Today’s uplift in the Johnson & Johnson share price is challenging the 161.44 resistance (38.2% Fibonacci retracement level from the 23 Nov swing low to the 26 January swing high. This move follows the upside gap of today following the vaccine approval, translating into a bounce from the 157.85 support level.
A break of this resistance has to push above the wedge’s upper border to target the 165.82 resistance (23.6% Fibonacci level), with a projected price move that should aim for 172.50 in the short term.
On the flip side, a rejection and pullback at current levels allow the price to retest the wedge’s lower border. This border intersects the 157.85 support, and a breakdown of this area opens the door for bears to push towards 155.05 (5 January 2021 low). This move also negates the expected bullish break of price from the falling wedge pattern.
Johnson & Johnson Daily Chart
