Schwab Network on $JNJ (Oct 29, 2026)

Our second choice is Johnson & Johnson. Their profits have exceeded expectations despite incurring significant losses during the quarter, and they are still rising. They rose in today's session .

They have been rising since announcing their earnings. Not a huge increase, but they are positive. How do you view Johnson & Johnson now, Dan?

Yes, as I mentioned earlier, there is a clear trend towards the defensive nature of these business examples today in sectors that are considered somewhat defensive , even Apple in the technology sector.

As you pointed out, Kevin, there is a kind of anti- AI trading. But at the same time, I think that when you look at Johnson & Johnson, we find that the healthcare sector is still showing strength, and as I also pointed out, it has seen a positive reaction after the earnings announcement, and I think the momentum is there for further upside based on technical analysis.

So, once again, I think it’s a defense company that still has the potential for further growth.

Okay, Katie, let's take a look at the Johnson & Johnson chart. What do you see ? I mean, the company has seen good movement this month. Its shares fell, but then rebounded. Well, overall, when you look at the past year, as well as the weekly charts, what do you notice in terms of trends?

Yes, I think it's better to move on to the weekly chart. It shows us the situation of Johnson & Johnson, not only its current situation, but also our expectations for its future path.

We have seen a period of consolidation over the past two years, starting from approximately November 2023, where we have observed consolidation between the 140 level as a support zone and the 165 level as a resistance zone, taking advantage of the 200-week moving average as a key resistance zone.

However, we began to see some buyers step in strongly in June 2025, and from here we began to record higher highs and lows. Right now, we are still seeing a clear upward trend .

There is an upward channel, and we have already reached a support zone. That was about two weeks ago, Marley, when you talked about that downward slide. The stock price reached around $250 or $245, but buyers entered the market as the hammer candle appeared, and we saw this decline continue last week.

We are still seeing this decline continue this week. Breaking through the $275 level will be critical, and if we can do that, and this upward range extends, the $290 level will be the next major resistance area .

Right now, the only thing we're seeing regarding Johnson & Johnson is a bearish divergence in the Relative Strength Index (RSI). Therefore, we are seeing lower peaks on the Relative Strength Index even though the stock is recording relatively higher peaks.

Our MACD indicator is in an upward position, attempting to cross over the 12-day exponential moving average above the 26-day exponential moving average, which is also in an upward position.

Again, this is the weekly chart. The weekly chart shows a strong positive trend. The stock reached a previous support zone . Now, it is expected to reach a resistance zone, returning to approximately the 290 level for Johnson & Johnson stock.

Okay, Dan. Kevin KG sees more upside potential in this defensively oriented stock. Explain your deal to us with an example.

Yes, and I think I referred to the recent highs we saw in early September, which were around the 278 level, and it appears we rose a little this morning before settling at that level.

But , as Kevin pointed out, I think a break above 275, and a significant break above 278, would certainly indicate the possibility of further upside, as it breaks out of the range that has formed over the past two months.

So, the example of day trading is participating in the rise, and when I look at this stock, I see it as a long-term investment , and even as a core part of the portfolio. Therefore, it is a buying opportunity.

Simply put, buy the stock and then sell the January call option at $300 for about $4.55. This provides a profit margin of approximately 10% in the event of a price breakout. It also postpones the potential tax implications of closing the deal until January of next year.

Even if we don't reach $300 or higher by the time the deal expires in January, you will still be able to participate. I believe this stock is suitable for long-term investment, whether in the coming year or in the future .

Well, as we can see now, the stock price is 27533. We climbed to the 278 range earlier today, and the price is still about $10 below its highs this year, but we're up 1.5% during the session.

So, once again, we're going against the general market trend,