Johnson & Johnson (NYSE:JNJ), the iconic healthcare giant known for its stable dividends and defensive appeal, has entered a bearish technical pattern: the Death Cross.

This occurs when the stock's 50-day moving average falls below its 200-day moving average, signaling potential downside.

Chart created using Benzinga Pro

JNJ Stock Chart: Bearish Signals Abound

JNJ stock, at $145.58, is below critical moving averages across the board. Its 20-day ($144.97), 50-day ($154.24) and 200-day ($154.66) moving averages suggest the trend is firmly bearish. With a MACD of a negative 2.72 and a Relative Strength Index of 36.84, the technical setup doesn't inspire confidence.

The one silver lining? JNJ stock's eight-day simple moving average of $144.97 is slightly below its current price, flashing a rare bullish signal amid the gloom.

Read Also: FDA Rejects Johnson & Johnson’s Injectable Version Of Approved Drug For Lung Cancer

Johnson & Johnson’s Strategic Moves In Dermatology

While the charts tell one story, Johnson & Johnson's business narrative points to another. The company recently inked a licensing deal with Kaken Pharmaceutical for KP-723, a promising candidate targeting atopic dermatitis (AD), also known as eczema. With plans to launch a phase I study in 2025, Johnson & Johnson is positioning itself to address significant unmet needs in autoimmune and allergic diseases.

This move aligns with the company's strategic focus on differentiated mechanisms of action in dermatology. Johnson & Johnson's acquisitions in 2024 also bolstered its dermatology pipeline, emphasizing innovative treatments for AD and other immune-mediated conditions.

Dividend Reliability Meets Bearish Momentum

Johnson & Johnson's long-standing reputation as a dividend aristocrat—boasting 60+ years of consistent payouts—continues to provide a safety net for investors.

With ample liquidity, low leverage, and robust free cash flow, the company's dividend sustainability remains solid even in the face of technical bearishness.

The Verdict

The Death Cross may cast a shadow over Johnson & Johnson stock's short-term outlook, but its commitment to growth, innovation, and reliable dividends underscores its long-term appeal.

Investors should weigh JNJ stock’s bearish technical indicators against the company's strategic moves in dermatology and its history of weathering market storms.

As Johnson & Johnson looks to tackle eczema and diversify its portfolio, the stock may be down but far from out. For now, the Death Cross is a storm cloud on the horizon—but every storm eventually passes.

Read Next:

• Top 7 Blue-Chip Stocks With The Best Return Potential Going Into 2025

Photo by Tada Images via Shutterstock.