Johnson & Johnson (JNJ) operates in healthcare, with segments Innovative Medicine and MedTech, and trades on the NYSE as “JNJ”. The forecast expects a bullish sequence from the January 2025 low.
The view is that the price is in a double correction lower in wave ((4)). Support is projected between $227.80 and $215.82, with buyers expected to enter that zone for at least a three-swing bounce.
On the weekly chart, wave (I) ended at $186.69 in April 2022 and wave (II) ended at $140.68 in January 2025. Within (II), w ended at $150.11, x at $175.97, and y at $140.68, described as a choppy double three.
From the April 2025 low, ((1)) ended at $169.99, ((2)) at $141.50, and ((3)) at $251.71. Within ((3)), (1) ended at $159.44, (2) at $146.12, (3) at $215.19, (4) at $200.91, and (5) at $251.71.
Below $251.71, a seven-swing pullback in ((4)) is expected. In ((4)), (W) ended at $232.24, (X) at $247.21, and (Y) is projected lower towards $227.80–$215.82, with a later target above $259.
We see Johnson & Johnson in a strong upward trend that started back in January 2025. The stock is currently in a temporary pullback, which we view as a healthy correction. This presents a buying opportunity as the price approaches the key support area between $227.80 and $215.82.
This bullish outlook is supported by the company’s strong performance over the last year, especially after the impressive Q4 2025 earnings report. That report showed a 12% year-over-year revenue increase, largely driven by its MedTech division. These fundamentals reinforce the technical view that the primary trend remains upward.
Looking back, the stock completed a major rally of nearly 78% from its April 2025 low of around $141.50 to the recent high of $251.71. A correction after such a powerful move is normal and expected. We interpret the current dip as a wave ((4)) pullback, setting the stage for the next leg higher toward prices above $259.
For derivative traders, this means focusing on bullish strategies as JNJ approaches our target support zone. Selling cash-secured puts with strike prices like $225 or $220 for May and June 2026 expirations could be an effective way to collect premium. This strategy either generates income or allows for entering a long stock position at a desired lower price.
Alternatively, traders anticipating a sharp bounce from the support area could look to buy call options. Once the price enters the $227.80 – $215.82 zone and shows signs of stabilizing, purchasing July 2026 calls with strike prices of $250 or $255 would provide leverage for the expected rally. We would advise against buying puts or initiating bearish positions, as this would mean trading against the dominant bullish trend.
