Johnson & Johnson's near vertical run off the Jan. 25 low appears to be losing steam. The stock had surged over 16% from the late January bottom at last week's high. JNJ has drifted lower since then and is now on the verge of a healthy pullback. As this plays out patient JNJ investors will be given a low risk entry opportunity for this A- rated stock.

After leaving behind a powerful spike low back in late January JNJ began a steady rebound. By Feb. 9 the stock was in full rally mode and, with the help of a major breakout one week later, had moved well past heavy resistance near the 200-day moving average. JNJ continued tracing out a narrow bullish channel into last week but as this week reaches a midpoint, the pattern is showing signs of exhaustion.

Last week, JNJ reached an extremely overbought MACD (moving average convergence/divergence) reading. This week, the stock has broken the lower band of its eight-week bull channel. While shares are holding initial support near last year's low, today a deeper pullback will likely be the result. Patient JNJ investors should keep a close eye on the $124.50 to $123.00 area as this plays out. This very solid support zone includes the initial February highs near the upper band and the February peak near the lower band. Stabilization in this zone would provide a much lower risk entry opportunity than currently available.

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