Don't Ignore This Chart

Volatility Contracts as J&J Consolidates

Johnson & Johnson (JNJ) appears to be ending its consolidation period with a surge and triangle breakout over the last three days. Overall, the stock is in a long-term uptrend because it hit a 52-week high in June and remains well above the rising 200-day moving average. JNJ consolidated after hitting this high by forming a triangle over the last few months. Notice that Bandwidth dipped to its lowest level since January as volatility contracted into late August. This is typical for a consolidation and it looks like volatility is turning back up as the stock breaks out. 

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