Looking for a low drama Covid Stock? Check out $JNJ. (August 12, 2020)
JNJ CODX APT LAKE MRNA AZN
This is Scott with your Free Chart of the Day. If you are looking for a low-drama COVID stock I would definitely consider looking at Johnson & Johnson ( NYSE: JNJ ). Look how nice and orderly JNJ ( NYSE: JNJ ) trades. You can see recently how we are holding up just above the 50-day moving average. That’s a line that major institutions look at for buying support.
You can see how it has acted as support recently and you can assume if price come down here that ideally buyers will step in and support it again. If it doesn’t then it’s doing something different. This, technically, is kind of a COVID trade and it is much more orderly than the other COVID stocks.
Let’s take a look at CODX ( NASDAQ: CODX ). Drama, in the last couple of days we are down almost 40 percent. APT ( NYSEAMERICAN: APT ), what have we got here? The last couple of days we are down 36 percent. LAKE ( NASDAQ: LAKE ), how are you doing? The last couple of days we are down here, again, 30 percent. Even take a look at Moderna ( NASDAQ: MRNA ). Yikes! They get a boatload of money coming towards them and the stock sells off. AZN ( NYSE: AZN ), okay, a little better but again, I like JNJ ( NYSE: JNJ ).
The reason I like JNJ ( NYSE: JNJ ) is because it’s trading orderly. We have a clearly defined level of resistance at this downward sloping trendline. It has acted as resistance here, acted as resistance here, and today we just kind of tagged that line. So this is giving me a clearly defined level to watch for a breakout on JNJ ( NYSE: JNJ ). So I think you want to have an alert on this stock at around 150.50 and then take a look at it. You want to see the stock break above this level and do it on higher than average volume; because that could show that the stock is actually going to break out.
Now of course, this is a large-cap stock and it doesn’t trade a lot but, again, if you are looking for a chance to get exposure to a stock or a company that is doing something with COVID but also have a little bit of a buffer, because they have another business that’s working out pretty good, I think JNJ ( NYSE: JNJ ) could work for a good trade.
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