iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

The Daily Breakout: JNJ

The current market environment is limiting the number of successful Cup with Handle breakouts.  As conditions improve, the patterns will noticeably improve.

 This evening’s installment is Johnson and Johnson.

 Note the RSI(2) is near 98. Backtesting of over 8 million trades found that stocks with an RSI(2) greater than 98 typically underperform over the next 5 days. However, notice that JNJ had an RSI(2) >98 for the better part of September.

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6 comments

  1. Fly

    About time.

    You must have been trading while working or something.

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  2. Ragin Cajun

    Nice find. I love the cup & handle. This is a good pick Woody, really.

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  3. newequity

    I prefer rounded bottoms but a nice cup n’ handle works too.

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  4. Woodshedder

    Sorry for the delay-I have yet another puking child. This makes round 2, twice in 1 week, for this one.

    Cajun- stay tuned. They’ll get even better.

    NewE- I love me a nice, round bottom.

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  5. JakeGint

    Sympathize. My entire brood was sick last week.

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  6. Danny

    I like rsi 2 as a bottom indicator better than a top for the reason you supplied. 0-10.

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