- Posted by Greg Harmon
- on Might 2nd, 2022
Right here is your Bonus Concept with hyperlinks to the total Prime Ten:
Johnson & Johnson, $JNJ, comes into the week pulling again from an all-time excessive. For the previous month as value has trended increased momentum has diverged decrease. The RSI is now pulling again within the bullish zone with the MACD crossed down and shifting decrease. The 50 day SMA is on the 38.2% retracement of the final leg increased.
There may be assist decrease at 179.50 and 177.50 then 176.30 earlier than 174.25 and 173.25 then 171.50. Resistance increased is at 183 and 186.25. Quick curiosity is low beneath 1%. The inventory pays a dividend with an annual yield of two.50% and can start buying and selling ex-dividend Might twenty third. The corporate is predicted to report earnings subsequent on July nineteenth.
The Might choices chain exhibits the largest open curiosity on the 180 after which 170 strikes on the put aspect. On the decision aspect is way greater and targeted at 175 and 185. Within the June choices open curiosity on the put aspect is unfold from 180 to 140 whereas it builds from 165 to a plateau from 180 to 190 on the decision aspect then fades after 240. July choices present have greatest open curiosity at 180 and it tails to 145 on the put aspect, with a spotlight from 180 to 195 on the decision aspect.
Johnson & Johnson, Ticker: $JNJ
Commerce Concept 1: Promote the inventory quick on a transfer beneath 180 with a cease at 184.
Commerce Concept 2: Promote the inventory quick on a transfer beneath 180 and add a Might 185 Name ($1.83) whereas promoting the June 165 Put ($1.63).
Commerce Concept 3: Purchase the June 180/165 Put Unfold ($4.30) whereas promoting the Might 170 Put (88 cents).
Commerce Concept 4: Purchase the June 180/170-165/160 Damaged Wing Break up Put Butterfly ($3.25).
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After reviewing over 1,000 charts, I’ve discovered some good setups for the week. These had been chosen and must be seen within the context of the broad Market Macro image reviewed Friday which with April within the books, noticed fairness markets off to their worst begin in over 80 years and in downtrends.
Elsewhere search for Gold to proceed the quick time period pullback whereas Crude Oil consolidates in its uptrend. The US Greenback Index continues a powerful transfer increased however is at resistance whereas US Treasuries proceed to development decrease. The Shanghai Composite seems to be to bounce in its downtrend whereas Rising Markets proceed to development decrease.
The Volatility Index seems to be to stay elevated and presumably persevering with increased making the trail simpler for fairness markets to the draw back. Their charts additionally look robust, particularly on the longer timeframe. On the shorter timeframe each the QQQ and SPY might us a reset on momentum measures as each are prolonged. If that occurs it may be time for the IWM to take the lead. Use this data as you put together for the approaching week and trad’em effectively.
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