I’ve been very upbeat on Johnson & Johnson (JNJ) lately and fortunately for me, that sentiment came at just the right time. JNJ has taken off higher this year and after a very well-received Q3 report from earlier this week, it is flying to yet another new high. I have to admit, however, that it seems to be getting to the point where it may be fully priced in the low-$140s and in this article, I’ll walk through why I think that. Indeed, that’s a change from my rather bullish tilt for much of 2017 so in fairness to you, I’ll explain myself.
First, the chart on this thing is absolutely beautiful. JNJ consolidated during the summer after a huge run higher and after the earnings report, it is making new highs yet again. The moving averages are going sharply higher and the momentum indicators are confirming the move as well by getting into overbought territory. Indeed, it is that last bit about being overbought that makes me think JNJ needs some time to breathe before going higher.
