Investment idea: “Johnson & Johnson has made a new breakthrough in medicine! Shares are growing!”

Johnson & Johnson (#JNJ) – is an American holding company that leads more than 250 subsidiaries worldwide, including: DePuy, , Johnson & Johnson Pharmaceutical Research and Development, Janssen Biotech, , , , Johnson & Johnson Consumer Companies and others.

Johnson & Johnson is one of the world’s leading manufacturers of medical equipment, medicines and sanitary products. The total revenue of the company for 2018 amounted to $ 81.39 billion. Johnson & Johnson was founded in 1886. Factors indicating the purchase of JNJ shares in December:

1. Breakthrough developments in oncology. Johnson & Johnson is one of the leading companies in the field of oncology. So, the company Johnson & Johnson in November received positive reviews about the trials of a new drug from one of the kinds of cancer. It was immediately called a breakthrough. So far there is little news about this drug, but Johnson & Johnson shares are already strengthening on these information.

2. Seasonality and ascending dynamics of the DOW 30 index. Johnson & Johnson shares are prone to seasonal fluctuations, especially on the eve of the Christmas and New Year holidays. Cosmetology products and hygiene products of Johnson & Johnson are a classic gift in this period.

The DOW 30 index, which includes JNJ shares, forms a reversal after a decline, which indicates a fundamental support. It is worth noting that the shares of Johnson & Johnson did not change significantly during the general decline in the stock index DOW 30.

Fig. 1. DOW 30 index chart (blue line is JNJ shares) Johnson & Johnson shares are more likely to rise, despite the decline in the DOW30 index.

3. Technical factors. Technically, Johnson & Johnson shares maintain a general uptrend. At the same time, the decline in the last days of November is limited by oversold shares, which indicates a potential for renewed growth in the long term.

Fig. 2. JNJ shares chart

Saving uptrend after a positive corporate report will be considered as an excellent opportunity to buy Johnson & Johnson shares after the test of the lower limit of the upward channel.

The risk factor is the persistence of pessimistic sentiment in stock markets, which may increase in the fundamental factors and geopolitical risks. The main issue is to connect to the idea on renewed growth!

The recommended period for connecting to the idea is December from 3 to 7, 2018.

The period of working out the idea is until January 10, 2019.

The recommended start amount is $ 10,000.

The potential profit is from 300% to 600% of the lot size.

Connect

* Entry points, exact profit, protective orders and transaction hedging - check with the manager when you connect!підключенні!