Johnson & Johnson
Another pharmaceutical name that's looking bearish right now is Johnson & Johnson ( JNJ). The blue-chip health care company is starting to look "toppy" thanks to a head and shoulders pattern that's starting to show itself in the long-term. From here, the price level to watch is $82.
The head and shoulders is a bearish reversal pattern that indicates exhaustion among buyers. The pattern is formed by two swing highs that top out around the same level (the shoulders), separated by a bigger peak called the head; the sell signal comes on the breakdown below the pattern's "neckline" level, which is right at that $82 price level. Until then, it's not a high probability trade yet.Lest you think that the head and shoulders is too well known to be worth trading, the research suggests otherwise: a recent academic study conducted by the Federal Reserve Board of New York found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits