$JNJ entered a “Go” trend at the beginning of July.
We saw price move quickly higher on mostly strong blue bars until it hit a high of almost $170. After that high, we saw a Go Countertrend Correction Icon (red arrow) indicating that price may struggle to move higher in the short term. Indeed, we then saw price fall back into the channel making a flag shape and painting mostly weaker aqua bars. As GoNoGo Oscillator fell to test the zero line it was important that it found support and it did, bouncing off that level on heavy volume. This gave price the push it needed to break out and complete the bullish flag pattern on a strong blue “Go” bar. With momentum surging in the direction of the “Go” trend, we will look for price to consolidate at these elevated levels.
