Johnson & Johnson (JNJ) Shares Drop Over 7%
As the chart shows, Johnson & Johnson (JNJ) shares declined by approximately 7.6%, reaching their lowest level since late February. This marked one of the worst performances in the stock market yesterday.
Why Did JNJ Shares Fall?
Two major bearish factors contributed to the decline:
- A Texas judge rejected Johnson & Johnson's third attempt to settle lawsuits related to allegations that its baby powder and other talc-based products harmed consumers.
- On Tuesday, Johnson & Johnson announced that its upcoming acquisition of Intra-Cellular Therapies is expected to dilute adjusted earnings per share by approximately $0.25 for the full year 2025. Investors appear to have reacted negatively to this outlook, despite the companys expectation that the deal will generate around $700 million in additional sales.
Technical Analysis of JNJ Stock Chart
Price movements in 2025 have formed an ascending channel (marked in blue), with indicators highlighting how:
The channels boundaries have acted as support and resistance levels.
The channels median line has served as a magnet for price action, reflecting the balance between supply and demand.
As JNJ's share price approaches the lower boundary (circled), just above the psychological support level at $150previously a key level in Februarytraders have reasons to anticipate that the decline may slow down or even lead to a significant rebound from this support area.
Read more: https://fxopen.com/blog/en/oa-johnson-johnson-jnj-shares-drop-over-7/
Text source: Forex Trading Blog
