Johnson and Johnson’s (J&J) or JNJ in the New York Stock Exchange disappointed those who are long on the stock when the company, global pharmaceutical and consumer goods manufacture firm, posted a 5.4% decline in the sales of their consumer products for the second quarter of the year. Much of the company’s slide in profits could be attributed to the closure of its Pennsylvania plant due to the failure of its 40 children products to meet the US FDA’s quality control standards. Still, the company earned $3.45 billion in the second leg of the year which was better than the $3.21 billion it had during the previous period. Nonetheless, the slide in their sales resulted to a 1.5% drop in the valuation of their stocks.
Technically, the shares of JNJ likewise gapped down following the company’s less-than-stellar sales figure. In the process, their stocks broke below its short term uptrend line and also fell under its 50-day and 200-day moving averages. So in order for it to be on the positive path again, it now needs to move past the former uptrend line and the 2 MAs. With the RSI falling less than 50 and the MACD just turning negative, the stock would more likely head lower. And if and when it does, its next support would be at 57.50.
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