Johnson & Johnson shares rebound on Thursday, company said to be negotiating the acquisition of Actelion Ltd

According to persons familiar with the matter, who preferred to remain anonymous, Johnson & Johnson is currently in negotiations over the acquisition of Actelion Ltd, a Swiss biotechnology company. The potential deal is said to part Actelions commercialized portfolio from its research and development division.

Johnson & Johnson shares closed higher on Thursday, rebounding after a 0.70% drop in the previous trading session. The stock edged up 0.34% ($0.39) to $115.49, with the daily high and the daily low being at $115.87 and $115.06 respectively. In the week ended on December 25th the shares of the health care product manufacturer added 0.07% of their market value compared to a week ago, which marked a third consecutive period of advance, but yet, the smallest one since the week ended on September 18th. The stock has extended its advance to 3.76% so far during the current month, following four consecutive months of decline. In November J&J shares retreated 4.04%.

The deal, which might be finalized by the end of January, would let Johnson & Johnson to buy the Swiss biotech company through a cash offer of about $260 a share, while at the same time, Actelion shareholders would receive further financial benefits from its research and development division. The latter would become a part of a new publicly traded entity, according to people with knowledge of the negotiation process. However, the ownership structure of the new company as well as whether Jean-Paul Clozel, Actelions Chief Executive Officer, would assume the same role at the new entity, still remain matters of discussion.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Johnson & Johnson stock are presented as follows:

R1 – $115.57
R2 – $115.65
R3 (Range Resistance – Sell) – $115.73
R4 (Long Breakout) – $115.96
R5 (Breakout Target 1) – $116.24
R6 (Breakout Target 2) – $116.35

S1 – $115.41
S2 – $115.33
S3 (Range Support – Buy) – $115.25
S4 (Short Breakout) – $115.02
S5 (Breakout Target 1) – $114.74
S6 (Breakout Target 2) – $114.63

By using the traditional method of calculation, the weekly levels of importance for Johnson & Johnson (JNJ) are presented as follows:

Central Pivot Point – $115.50
R1 – $117.12
R2 – $118.28
R3 – $119.90
R4 – $121.52

S1 – $114.34
S2 – $112.72
S3 – $111.56
S4 – $110.40