OptionsPlay DailyPlay

The bearish DailyPlay we chose for Tuesday Jan 31st is Johnson & Johnson (JNJ). JNJ is part of the Healthcare Sector (XLV). Over the last month, XLV has experienced a 0.49% move higher and its 1m/6m trend has bearish today while bouncing lower off its $70 resistance level.

Johnson & Johnson’s 1m and 6m trends turned bearish on 1/11 while breaking below its $114 support level on high volume which now becomes resistance. With a technical score of 2 (out of 10), JNJ looks positioned to continue this strong bearish trend lower.

View this Trade Idea on JNJ

As a stop loss, if JNJ was to trade above $114 for multiple days, this would invalidate our analysis and suggest getting out of the trade.