Key Takeaways
- Novo Nordisk’s U.S.-listed shares had been barely greater in current buying and selling after shedding a 3rd of their worth final week, when the corporate lower its full-year outlook and named a brand new CEO.
- The shares had resumed their steep downtrend final week on above-average quantity, indicating promoting conviction from bigger market members.
- Buyers ought to watch main assist ranges on Novo Nordisk’s chart round $36 and $29, whereas additionally monitoring key overhead areas close to $60 and $78.
Novo Nordisk’s (NVO) U.S.-listed shares had been up about 2% in current buying and selling after shedding a couple of third of their worth final week, when the corporate lower its full-year outlook and named a brand new CEO, main Wall Road analysts to downgrade the inventory.
Since hitting a document excessive in June final yr, Novo Nordisk shares have misplaced roughly two-thirds of their worth, pressured by growing competitors from rival Eli Lilly’s (LLY) weight-loss medication and challenges throughout trials of the corporate’s next-generation weight problems medication.
Beneath, we take a better have a look at Novo Nordisk’s weekly chart and use technical evaluation to determine main worth ranges that traders will doubtless be watching after final week’s dramatic sell-off.
An Prolonged Downtrend
With final week’s drop, Novo Nordisk shares resumed their steep downtrend on above-average buying and selling quantity, indicating promoting conviction from bigger market members.
The sell-off coincided with the relative energy index (RSI) falling to its lowest ranges since early Could, signaling weakening worth momentum, although the indicator neared its oversold threshold, growing the possibilities for short-term bounces.
It’s additionally price noting that the 50-week shifting common continues to converge towards the 200-week MA, doubtlessly setting the stage for an ominous loss of life cross, a bearish sample that forecasts decrease costs.
Let’s determine two main assist ranges on Novo Nordisk’s chart price watching if promoting resumes this week and likewise level out a number of key overhead areas to watch throughout potential restoration efforts.
Main Assist Ranges Price Watching
The primary main decrease degree to look at sits round $36. This space would doubtless present assist close to the higher vary of a consolidation interval that fashioned on the chart between October 2020 and April 2021.
A extra important transfer decrease might see the shares take a look at decrease assist on the $29 degree. Buyers could search for shopping for alternatives on this space close to a horizontal line that connects a spread of corresponding worth motion on the chart between January 2018 and April 2020.
Key Overhead Areas to Monitor
An preliminary restoration effort might see the shares climb to overhead resistance round $60. The value could encounter promoting stress on this space close to the outstanding April trough and April 2022 peak.
A extra bullish upswing opens the door for a rally towards $78. Buyers who’ve purchased Novo Nordisk shares at decrease ranges could determine to lock in earnings on this location close to the June peak, which carefully aligns with the completion of a pullback in July 2023.
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