Johnson&Johnson: Rejected Again

Johnson&Johnson has now been rejected at the $168.75 resistance level for the second time, pulling back more noticeably in response. However, in our primary scenario, we still expect an imminent breakout above this level, which should allow the turquoise wave X to establish its high well above it. Afterward, the turquoise wave Y should drive the stock sharply lower again, as we anticipate the low of the larger green wave [2] in the corresponding long Target Zone between $138.78 and $125.75. That said, reaching this Zone is not a certainty. There remains a 35% chance that the low of the green wave alt.[2] is already settled. Under this alternative scenario, the stock would break through $168.75 without resistance and continue its impulsive move higher.