Johnson & Johnson (JNJ) shares tumbled Tuesday after the health care giant 澳洲幸运5官方开奖结果体彩网:failed to reach a settlement in liability cases related to its baby po🍸wder and other talc products.

The company said Tuesday that a judge denied its plan to settle thousands of legal claims alleging that its talc products cause ovarian cancer, adding that it will now return to the tort system to litigate and defeat the claims. The failed proposal involved using a "prepackaged bankruptcy plan" for a subsidiary, marking the third attempt the company has used the 澳洲幸运5官方开奖结果体彩网:bankruptcy system in an effort to settle the claims.

Johnson & Johnson shares led S&P 500 decliners on Tuesday, falling 7.6% to close at $153.25. Despite today’s steep drop, Johnson & Johnson shares have gained 6% so far this year as of Tuesday’s close, handily outpacing the 澳洲幸运5官方开奖结果体彩网:S&P 500’s 4% decline over the same period.

Below, we take a closer look at Johnson & Johnson’s 澳洲幸运5官方开奖结果体彩网:weekly chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to point out key price levels that investors🧔 may be watching.

Descending Channel in Focus

Since setting their 澳洲幸运5官方开奖结果体彩网:record high in April 2022, Johnson & Johnson shares have traded lower within an orderly 澳洲幸运5官方开奖结果体彩网:descending channel, tagging the pattern’⭕s upper and lower trendlines on several occasions sinceꦰ that time.

More recently, the Dow component ran into selling pressure near the descending channel’s upper 澳洲幸运5官方开奖结果体彩网:trendline, with the price falling below both the 50✤- and 200-we🐷ek moving averages in Tuesday’s trading session.

Today’s drop also coincided with the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) plunging below the 50 threshold, signaling accelerating selling m♏omentum.

Let’s identify key 澳洲幸运5官方开奖结果体彩网:support and resistance levels on ꧋Johnson & Johnson’s chaꩵrt worth watching.

Key Support Levels to Watch

Firstly, it’s worth keeping track of the $147 level. This area will likely provide support near a trendline that connects multiple 澳洲幸运5官方开奖结果体彩网:peaks and troughs on the chart stretching between Jaไnuary 2018 and Ju♈ne last year.

Further selling could see a 澳洲幸运5官方开奖结果体彩网:breakdown below the descending channel’s lower trendline and subsequent fall to around $137. Investors may be on the lookout for 澳洲幸运5官方开奖结果体彩网:entry points in this region near a trendline that links the June 2017 peak with a range of comparable 澳洲幸运5官方开奖结果体彩网:price action on the chart through to October 2020.

Major Resistance Levels to Monitor

Upswings in Johnson & Johnson shares could initially meet overhead resistance near the $167 level, currently just above the descending channel’s upper trendline. The stock may encounter selling pressure in this location ne𓂃ar the Ma♉rch and September peaks, with the area also roughly aligning with trading activity extending back to February 2021.

Finally, a breakout above this level could see the shares climb to around $180. Investors may look for 澳洲幸运5官方开奖结果体彩网:profit-taking opportunities here near the prominent August 20꧋21 and December 2022 peaks, which both sit slightly below the stock’s recor𝔉d high.

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