Chapter X: Technical Analysis discovers the range of moods of investors toward JNJ. |
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| A well known sentiment indicator is the NVI or Negative Volume Index for Johnson and Johnson. This version is includes several enhancements suggested by Norman Fosback. The plot is the proportion of the daily NVI as compared to the past year's average daily NVI. The plot is orange below the unity line (neutral implication) and green above (bullish). |
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How to read the Calibrated NVI for Johnson and Johnson: The NVI is an elegant indicator based on sound principles but it should not be interpreted in a simplistic manner. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
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| Because the NVI operates over a somewhat longer time frame than most technical indicators, it is of interest to track it over a longer period to get a feeling for how it works. This chart for Johnson and Johnson covers the few years before the start of the chart at the top of the page. |
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| Weekly average closing altitude was 57.31 percent for the week ending 1/29/2010. Past values of the Closing Altitude indicator are marked by the blue line. The midline represents the 50 percent closing altitude. If the closing prices happened to be exactly halfway between the high and low, they would be plotted on this midline. Values above the midline indicate that day traders have positive feelings toward JNJ while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The short-term trend is positive, with a slope of 148.42. Johnson and Johnson stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.67. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. Johnson and Johnson share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.The last tic shows an uptrend in the volume portion of 0.08. |
Influence of Investor Sentiment on JNJ stock prices. Also, roadmap and Summary of most effective indicators: |
| Friday, February 05, 2010: We have news on Genzyme Corporation, ticker symbol GENZ. A significant moving average event has happened. Also, there are breaking events concerning Archer-Daniels-Midland and Pactiv Corporation. From the News Archive: (2/5/2010 ) Favorable events happened at Wells Fargo & Company, Marathon Oil Corporation, Dell Inc., and Principal Financial Group, Inc.. |