TopOptionAlert
Oct 19, 8:55 AM
$JNJ NOV20 265C · still actionable
Zone:
$253.77 to
$257.35
Invalidation: close under
$245.17
Objectives:
$264.39, then
$281.07
The math: up 3.5% to the first objective and 10.0% to the second, against 4.1% risk on the invalidation, about 2.4 to 1 to the second
Think of this swing setup like a sturdy old house that took a loud knock on the door and did not move. Johnson and Johnson reported earnings on October 13 and beat what analysts expected, yet price dipped to
$245.17 that day before buyers stepped back in and carried it to a
$255.56 close on Friday, up 0.9 percent that day. What that means is simple. The low after the report is now our floor, and above us sits the
$264.39 high from before the report and then the
$281.07 yearly high. If price closes under
$245.17 that floor has given way and you step aside.
P.S. Watch
$254 on Monday. It was the low on Friday, and a second hold there would show buyers are still defending the recovery.
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