Johnson & Johnson  (JNJ) – Get Report continues to trade well, bubbling just below its prior all-time high. 

That has investors wondering if the healthcare juggernaut can notch new records after reporting earnings on Tuesday before the stock market opens. In fact, the charts are looking pretty familiar.

Shares of J&J traded down into the 200-day moving average ahead of earnings in July. Then the stock began to climb higher in anticipation of the results. While the upside reaction wasn’t overwhelmingly bullish, it was still positive.

It’s what allowed shares of Johnson & Johnson to continue higher, ultimately making new highs in early September.

Will the stock repeat its actions?

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Trading Johnson & Johnson

Daily chart of Johnson & Johnson stock.

Daily chart of Johnson & Johnson stock.

Johnson & Johnson is working on its fourth straight daily rally, while Monday’s strength should be no surprise given the broader market’s surge.

The stock put in a higher low in October vs. its September low, while reclaiming the 20-day and 50-day moving averages with its recent rally. That low in September came on a test of the 200-day moving average, which has been support so far this summer.

When measuring the September range, J&J shares were able to hit the 78.6% retracement on Monday, near $152.70.

Now bulls want to see a bullish rotation, not just over the 78.6% retracement, but over key resistance near $155. A move over this zone is vital for a breakout to occur.

If Johnson & Johnson can clear this mark and close above it, it opens the door to the $161 to $163 area. Near $161 it

Dow component Johnson & Johnson (JNJ) is due to report third quarter 2020 earnings in Tuesday’s pre-market, with analysts expecting earnings per share (EPS) of $1.98 on revenue of $20.15 billion. The stock barely budged after the company beat second quarter estimates and raised guidance in July, and it is now trading just three points higher. More importantly, the stock has gone absolutely nowhere since recovering first quarter losses in April, stuck in a trading range between $135 and $155.

Key Takeaways

  • Johnson & Johnson is defending at least 19,000 baby powder lawsuits.
  • The stock has been stuck in a trading range for more than two and a half years.
  • Price action has recovered first quarter losses on weaker-than-expected buying volume.

The drug manufacturer has been a Dow laggard since topping out above $148 in January 2018, adding just four points between then and now. A generous dividend yield has eased shareholder pain while the company works through 19,000 lawsuits alleging illnesses caused by its talc-based baby powder. Bloomberg just reported that Johnson & Johnson will pay over $100 million to end over 1,000 legal actions, telling us that the company will be dealing with this headwind for years to come.

Johnson & Johnson is also developing a COVID-19 vaccine, reporting good results in a Phase 2 clinical trial in September. However, the CEO recently stated that a commercial vaccine isn’t likely until next year, even though competitors will be rushing their compounds to market to increase acceptance and profitability. It’s hard to tell if the tortoise or the hare will win this battle, given the high risk of rejection by a skeptical public.

Wall Street is showing little interest in the lawsuits, posting a “Strong Buy” rating on Johnson & Johnson shares based upon seven “Buy” ratings, with no

LONDON (Reuters) – British Prime Minister Boris Johnson does not particularly wish for the Brexit transition period to end without a new trade deal in place but believes that Britain could live with such an outcome, he said on Sunday.

With the Dec. 31 expiry of the transition period fast approaching, Johnson and the head of the EU’s executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up negotiations on a post-Brexit deal.

“I think it’s there to be done,” Johnson said during an interview on BBC television.

“Alas, there are some difficult issues that need to be fixed, and there’s no question that the EU needs to understand that we’re utterly serious about needing to control our own laws and our own regulations, and similarly they need to understand that the repatriation of the UK’s fisheries … is very important.”

Asked whether he was worried about the potential impact of a no-deal situation in the middle of the COVID pandemic, Johnson said: “I don’t want the Australian WTO-type outcome, particularly, but we can more than live with it.

“I think the people of this country have had enough … of being told that this will be impossible or intolerable. I think we can prosper mightily under those circumstances.”

The government last week told importers and exporters they would have to complete extra paperwork whether there was a deal or not and that a lack of preparation on their part could lead to 100 km queues of trucks.

That prompted accusations from the opposition that ministers were setting up industry to take the blame for any chaos that might follow a botched Brexit.

The EU says that any deal must be sealed by the end of October, or in the first days of November at

LONDON (Reuters) – British Prime Minister Boris Johnson does not particularly wish for the Brexit transition period to end without a new trade deal in place but believes that Britain could live with such an outcome, he said on Sunday.

With the Dec. 31 expiry of the transition period fast approaching, Johnson and the head of the EU’s executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up negotiations on a post-Brexit deal.

“I think it’s there to be done,” Johnson said during an interview on BBC television.

“Alas, there are some difficult issues that need to be fixed, and there’s no question that the EU needs to understand that we’re utterly serious about needing to control our own laws and our own regulations, and similarly they need to understand that the repatriation of the UK’s fisheries … is very important.”

Asked whether he was worried about the potential impact of a no-deal situation in the middle of the COVID pandemic, Johnson said: “I don’t want the Australian WTO-type outcome, particularly, but we can more than live with it.

“I think the people of this country have had enough … of being told that this will be impossible or intolerable. I think we can prosper mightily under those circumstances.”

The government last week told importers and exporters they would have to complete extra paperwork whether there was a deal or not and that a lack of preparation on their part could lead to 100 km queues of trucks.

That prompted accusations from the opposition that ministers were setting up industry to take the blame for any chaos that might follow a botched Brexit.

The EU says that any deal must be sealed by the end of October, or in the first days of November at

British Prime Minister Boris Johnson says “there’s a good deal to be done” with the European Union on post-Brexit trade as he prepares for crunch talks with the head of the bloc’s executive arm

LONDON — British Prime Minister Boris Johnson said Saturday that “there’s a good deal to be done” with the European Union on post-Brexit trade, as he prepared for crunch talks with the head of the bloc’s executive arm.

Johnson told reporters that the U.K. wants a free trade deal along the lines of the one the EU has with Canada, but is also prepared for negotiations to fail.

“We’re resolved on either course, we’re prepared for either course and we’ll make it work, but it’s very much up to our friends and partners,” Johnson said.

He and European Commission President Ursula von der Leyen will try to break an impasse in negotiations during a videoconference later Saturday.

The two parties are trying to strike a rudimentary trade deal before then, to avoid a barrage of uncertainty, tariffs and red tape that would hurt economies on both sides.

But while negotiators have inched close to agreement in many areas during six months of talks, they remain deadlocked over European fishing boats’ access to U.K. waters, and over the level of support governments can give to industry. The EU is concerned that British plans to subsidize sectors such as technology will amount to unfair competition.

“We should not forget that we have made progress on many, many different fields. But, of course, the most