JNJ Long consolidation..potential breakout

24 Nov

JNJ has been consolidating for over 2 years on this range now:

* monthly bull flag
* forming the right shoulder of an IHS on weekly chart (can even see it on the monthly)
* healthcare sector oversold, so can see a bounce

a bounce could push JNJ to test the upper trendline at 165-166.
The IHS neckline is at ~170 and the measured move puts it at around 185+

Play: 2026 leaps might be ideal here as they have low IV and can increase in value rapidly
I am looking at the 185C for Jan 2026

Resistance:
165 (volume node + 200WMA),
170 (volume node)
172, 175, 180

Support:
150

trade becomes invalid on weekly close below 150