Johnson & Johnson (JNJ) Stock Analysis: Potential Breakout

Johnson & Johnson (NYSE: JNJ) has recently made headlines with its announcement of a $55 billion investment over the next four years, aimed at building new U.S. facilities and expanding its research capabilities. This strategic move not only strengthens the company’s long-term growth potential but may also be supporting a technical breakout on the JNJ stock chart.

JNJ Technical Analysis: Signs of a Bullish Breakout Emerging

On the monthly chart, Johnson & Johnson stock is showing signs of a breakout following a prolonged downtrend. Currently trading around $163.23 per share, JNJ appears to be pushing above the upper trendline of a wedge pattern, a key technical signal that could indicate a bullish reversal.

Notably, the monthly MACD indicator has turned positive for the first time since the failed breakout attempt in September 2023. Additionally, a bullish divergence is forming on the MACD, which often precedes upward momentum in stock prices.

Key Resistance and Support Levels to Watch

The stock is currently facing resistance at $169.98, a level where some investors have taken profits following the February rally. Broader market uncertainty and economic concerns in the U.S. are also contributing to temporary hesitation among traders. However, with JNJ positioned as a defensive stock, it could benefit from increased interest in lower-risk investments during volatile market conditions.

A clear breakout above $169.98 would likely shift investor focus toward the next key price target at $175.96, followed by the all-time high of $187.80.

On the downside, the former wedge resistance has now become near-term support. Only a decisive move back below $160 would invalidate the current breakout scenario and potentially send JNJ back into consolidation within the wedge pattern.