Johnson & johnson (JNJ) – Get the report makes waves on Wednesday by acquiring Momenta Pharmaceuticals (MNTA) – Get the report for $ 6.5 billion.
For her part, shares of Momenta are up about 70% in the $ 52 low, or nearly $ 52.50 a share offer she received from J&J as part of the deal while cash.
Johnson & Johnson investors aren’t sweating either. The title is up about 0.6% on the day, some analysts even arguing that the operation undervalues Momenta.
The deal is expected to close in the second half of 2020 and will be used to boost Johnson & Johnson’s autoimmune treatments.
Remember, the company is coming out of a beating top and bottom profits and has raised its outlook for the entire year. Management has also spoken favorably about its Covid-19 treatment.
Overall, the track has established itself attractively on the charts and the Momenta Accord, at least so far, does nothing to derail the techniques.
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Johnson & Johnson shares trading
J&J shares topped $ 152.50 in February, before falling to $ 100 a month later. When stocks rebounded, we had an almost perfect V-shaped rally. Since then, however, the stock has consolidated.
Even though Johnson & Johnson shares have temporarily erased the previous high, this area of $ 152.50 continues to act as resistance. He dismissed the action in May and July, although the actions are picking up steam here again in August.
Johnson & Johnson stock is above its three major moving averages and is moving uptrend support (blue line). If he can wipe out the July high of $ 151.67, then he’s putting the $ 152.50 mark on the line.
The bulls are looking for a breakout above that mark, placing the all-time high in play near $ 156, followed by the 123.6% extension up almost $ 163. If all of this happens, we’ll need to re-evaluate the stock before we get too far ahead of our skis.
On the downside, look for a break in uptrend support. Below brings into play the $ 143 to $ 144 area. This is where the 78.6% retracement and July 31 low comes in. Below that area, the 200-day moving average is one to watch, along with the June low near 137. $ 50.