The Johnson & Johnson stock (NYSE:JNJ) is struggling to break through a level of resistance, which is preventing it from making further significant gains.

So far on Tuesday, the response that we have received from Johnson & Johnson (NYSE:JNJ) has been quite contradictory.

After the healthcare behemoth revealed its results for the third quarter, the shares dropped by around 0.5%.

Earnings were down 1.9% year on year, while sales were up 1.9%, and both of these indicators exceeded the forecasts of the market experts.

Some investors are claiming the mild reaction arises from the company’s move one month ago when it reiterated its full-year estimate and unveiled a $5 billion repurchase plan.

That’s a sensible lesson, even as management recently granted a rise to its full-year profits estimates to the tune of 5 cents a share. Earnings per share of between $10.70 and $10.75 are now anticipated from the company.

The typical ingredients for a stock rally include an outperformance on both the top and bottom lines of the business, an increase in earnings, and an increase in the general market. Let’s take a look at the standings in the midst of today’s activity.

It is possible to make the argument that the results of the fourth quarter (and the improved outlook) are already reflected in the stock price given that J&J surpassed the consensus profits projections by 7 cents per share.

In addition, since the management provided an update on the forecast on September 14, the share price has increased by approximately 2.5%.

Investors can spend the entire day debating whether the price of this company should move up, down, or sideways, but happily, the charts are rather straightforward.

The share price must go higher than the region between $167.25 and $167.50. This zone has been extremely important, functioning not just as support but also as resistance. At this time, the latter is correct.

If shares of J&J (NYSE:JNJ) cannot break out of this range, the price may continue to slide in the low to middle $160s.

In the event that this level is breached, investors may have the opportunity to purchase cheap shares in the zone between $155 and $157, similar to what patient purchasers have done in the past.

Johnson & Johnson Stock Prediction

If, on the other hand, shares of Johnson & Johnson (NYSE:JNJ) can trade higher than $167.50, this will indicate that buyers are willing to pay between $170 and $173 for them.

A number of different moving averages may be found in this region, including the 21-week, the 50-week, and the 200-day. In addition to that, it takes into account the weekly volume weighted average price (VWAP) and the retracement of fifty percent of the most recent range.

If it manages to break through this area, then the price of $176 becomes an option, followed by the low $180s.

Clearing out the first 167.5 dollars is the first step. Maintain a highlight on that point on your charts.