Pressure mounts ahead of the earnings

Taking a look at J&J ahead of its earnings tomorrow. Currently, its stock is trading at around $148.14 a share. Based on the weekly interval, we can see that its stock price has been trading within a downward pattern for some time now – since August of last year. There was an attempt to move higher back in March but a rejection along the descending trendline of the triangle occurred, encouraging sellers and forcing the price lower towards current levels. With the earnings due tomorrow, the price has approached a key support level here. The support reads $143.34, a break below this level could then see a further sell-off towards the support of $134.83. This level was last seen in October of 2020. With J&J shares down 21% from their all-time highs and down 6% year-to-date, investors will be hoping for some positive forward guidance into the rest of 2024 as some global economies are now showing signs of recovery. It would be unreliable to point out any resistance levels in a bearish market, however, if the earnings were to shift the bias, then the resistance in focus would be $158-$159 (along the descending trendline). Looking at the technical indicators, the MACD has turned negative once again and so is the RSI as it reads 38.