Johnson & Johnson (NYSE:JNJ) just hit a Golden Cross, a classic bullish technical pattern that signals potential long-term upside. The stock's 50-day simple moving average crossed above its 200-day simple moving average, often seen as a sign of strengthening momentum.
While the charts suggest optimism, Johnson & Johnson's latest breakthrough in lung cancer treatment could provide an additional catalyst for investors.
Chart created using Benzinga Pro
Johnson & Johnson Stock: Bullish, But With Near-Term Hurdles
At $162.37, the Johnson & Johnson stock price shows signs of strength, but short-term moving averages present a mixed picture. The eight-day simple moving average at $163.37 and the 20-day simple moving average at $164.45 suggest slight selling pressure. However, the 50-day simple moving average at $156.24 and the 200-day simple moving average at $155.72 firmly support a bullish trend.
The Moving Average Convergence Divergence (MACD) indicator at 1.74 reinforces the bullish outlook, while a Relative Strength Index (RSI) of 52.33 indicates the stock is in neutral territory -- not overbought or oversold.
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Cancer Breakthrough Could Fuel Long-Term Gains
Beyond technicals, Johnson & Johnson announced a major milestone in lung cancer treatment. The Phase 3 MARIPOSA study revealed that its RYBREVANT (amivantamab-vmjw) and LAZCLUZE (lazertinib) combination therapy significantly improved survival rates for patients with advanced non-small cell lung cancer.
With the European Medicines Agency considering approval, this breakthrough could be a long-term revenue driver.
Investor Takeaway: A Strong Setup With Momentum
The Golden Cross suggests Johnson & Johnson stock's long-term trend is turning bullish, but short-term resistance levels may test the stock's strength.
With a game-changing cancer treatment in the pipeline and technicals flashing bullish signals, investors have fundamental and technical reasons to keep Johnson & Johnson on their radar.
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