Since the crash of March 2020, all stocks have tried to recover what they lost and JNJ was no exception. Johnson & Johnson did not only recover the lost, but It also reached historic highs. Now, we are going to try to build a wedge from the March 2020 lows with a target above $176.
JNJ Old Daily Chart
In the last chart we can clearly see that after the fall of March 2020, JNJ had a strong and rapid recovery in 3 swings. The wave ((3)) had its highest point at 173.69 where JNJ was rejected by the market. This rejection did another double correction structure and overlaps the wave ((1)) zone to end the wave ((4)) and from here it should continue higher to complete wave ((5)) as a diagonal. (If you want to learn more about Elliott Wave Theory, please follow this link: Elliott Wave Theory).
JNJ Daily Chart
As days passed, the share price continued to rise until reaching 167.12, which we call wave (1). From there, we have a clear correction in a zig zag structure as wave (2) that bounced from a trendline. If this trendline is good, then JNJ should continue higher to complete wave (3). Short term, the wave (3)’s structure is not clear, it must follow with the trend, but we can not rule out a pullback before. Either way, next step we should see 176.31 – 178.78 area.
Source: https://elliottwave-forecast.com/stock-market/jnj-pushing-higher-end-wave-3/