Johnson & Johnson is a holding company. Through its subsidiaries, Co. engages in the research and development, manufacture and sale of various products in the healthcare field. Co.'s segments are: Consumer Health, which includes products focused on personal healthcare used in the Skin Health/Beauty, Over-the-Counter medicines, Baby Care, Oral Care, Women's Health and Wound Care markets; Pharmaceutical, which is focused on six therapeutic areas including Immunology, Infectious Diseases, Neuroscience, Oncology, Cardiovascular and Metabolism, and Pulmonary Hypertension; and Medical Devices, which includes products used in the Interventional Solutions, Orthopaedics, Surgery, and Vision fields.
When researching a stock like Johnson and Johnson, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from JNJ Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for JNJ stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the JNJ 200 day moving average ("JNJ 200 DMA"), while one of the most popular "shorter look-backs" is the JNJ 50 day moving average ("JNJ 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Johnson and Johnson. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the JNJ 200 DMA and the JNJ 50 DMA, we get a moving average convergence divergence indicator ("JNJ MACD"). The JNJ MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis