A few months ago, the worry was over blood clots despite such a fractional impact on those who had taken the vaccine.
While the company is now working to reduce those risks, Johnson & Johnson’s vaccine faces a new regulatory hurdle.
Specifically, the FDA may force J&J to disclose the risk of “a serious but rare side effect” known as Guillain-Barré syndrome.
So far, Johnson & Johnson stock hasn’t seen too much of an impact from these reports. But they may stymie the stock’s breakout attempt. Let’s look at the charts.
Trading Johnson & Johnson Stock
In January, Johnson & Johnson broke out over the $154.50 level, which had been resistance throughout 2020. On a pullback in March, this area acted as support, along with the 10-month moving average.
Since then, the stock has been putting in a series of higher lows, as the 10-month moving average continues to trend higher.
Earlier this month, J&J found even more momentum, bursting through the 50-day moving average and that tricky $168 level. Despite all the headlines lately, the stock continues to trade above these marks.
That said, it continues to struggle with the $170 zone. This area rejected Johnson & Johnson stock in January and May. However, as it continues to trend higher, bulls are hoping that it can eventually break out over this area.
The question now is: Will these headlines and reports of the FDA keep a lid on the stock or will bulls continue to ignore it?
If it does keep the stock from breaking out over $170, look for support from the 21-day and 50-day moving averages. Below puts uptrend support in play (blue line) followed by the 10-month moving average.
On the upside, a close above $170 puts the current high in play at $173.65. If the shares clear $174, bulls might begin looking at the 161.8% extension as a possible upside target.
Note: Johnson & Johnson is scheduled to report earnings on July 21.