Can J&J Break Out to Highs Amid COVID Vaccine Headlines?
Let's look at the charts. Johnson & Johnson (JNJ) - Get Report shares have been drifting higher, slowly but surely. But its COVID-19 vaccine lately has been rocking the boat. While Pfizer (PFE) - Get Report and Moderna (MRNA) - Get Report have been leaders with the COVID vaccine, J&J has played a role with its vaccine, too. A few months ago, the worry was over blood clots despite such a fractional impact on those who had taken the vaccine. While the company is now working to reduce those risks, Johnson & Johnsons vaccine faces a new regulatory hurdle. Specifically, the FDA may force J&J to disclose the risk of a serious but rare side effect known as Guillain-Barr syndrome. So far, Johnson & Johnson stock hasnt seen too much of an impact from these reports. But they may stymie the stocks breakout attempt. Lets look at the charts. Trading Johnson & Johnson Stock  Daily chart of Johnson & Johnson stock. Chart courtesy of TrendSpider.com  In January, Johnson & Johnson broke out over the $154.50 level, which had been resistance throughout 2020. On a pullback in March, this area acted as support, along with the 10-month moving average. Since then, the stock has been putting in a series of higher lows, as the 10-month moving average continues to trend higher. Earlier this month, J&J found even more momentum, bursting through the 50-day moving average and that tricky $168 level. Despite all the headlines lately, the stock continues to trade above these marks. That said, it continues to struggle with the $170 zone. This area rejected Johnson & Johnson stock in January and May. However, as it continues to trend higher, bulls are hoping that it can eventually break out over this area. If it does keep the stock from breaking out over $170, look for support from the 21-day and 50-day moving averages. Below puts uptrend support in play (blue line) followed by the 10-month moving average. On the upside, a close above $170 puts the current high in play at $173.65. If the shares clear $174, bulls might begin looking at the 161.8% extension as a possible upside target. Note: Johnson & Johnson is scheduled to report earnings on July 21.