Technicals To Watch As Johnson & Johnson Pauses Vaccine After Blood Clot Cases

Johnson & Johnson JNJ shares are trading lower amid a pause on its COVID-19 vaccine due to rare blood clot cases in some patients.

Johnson & Johnson was trading down 1.6% to $159 at publication time. Below is a technical analysis of the chart.

Johnson & Johnson Daily Chart Analysis: The chart above shows the stock is forming into a pennant chart.

Connecting the highs and the lows on the chart above shows that the stock is making lower highs and higher lows. This indicates the stock is consolidating and may trade sideways until a strong push one way may happen.

The stock is trading above the 200-day moving average (blue), indicating the sentiment in the stock has been bullish recently. This indicator is also another area where the stock may find support in the future.

What’s Next For Johnson & Johnson? Bullish traders would like to see the stock consolidate for a time period before the stock is able to cross above the line that connects the highs. A cross above this line could mean the stock is breaking out.

Bearish traders would like to see the stock consolidate for a time and break below the line that connects the lows. A cross below this line may indicate the stock is breaking down, and the stock may see a stronger push following the break.

Pennant patterns are able to go either way. This pennant pattern may be considered bullish or bearish by traders; the bullish run before the pennant may hint the pattern looks more bullish.