NVO to 107 USDTechnical Analysis Summary – NVO
After a prolonged downtrend, the stock established a potential reversal structure:
Wave 1: Initial impulsive rally, marking the first significant move against the prevailing bearish trend.
Wave 2: Healthy corrective pullback that retraced precisely to the 61.8% Fibonacci level of Wave 1, which is a classic depth for a Wave 2 retracement in Elliott Wave Theory.
The price also tested and bounced off the 200-day Simple Moving Average (SMA) on the first attempt, confirming this zone as key technical support.
A hidden bullish divergence formed: while the price created a higher low, the momentum indicator (RSI) printed a lower low. This suggests that sellers exhausted their strength and the primary trend may resume.
Premarket action showed the stock trading about +2% higher, indicating early buying interest and potential momentum continuation.
The projected target for Wave 3, assuming the scenario unfolds, is approximately $107, derived from the 161.8% Fibonacci extension of Wave 1. This also coincides with historically important resistance.
Overall, this setup combines:
✅ A clear Elliott Wave structure (Wave 1-2-3),
✅ Confluence of major support levels (61.8% retracement and the 200-day SMA),
✅ A hidden bullish divergence signaling continuation,
✅ A strong premarket move suggesting institutional interest,
✅ And supportive fundamentals behind the price action.
This is an example of a technically robust scenario with favorable risk/reward characteristics. Traders will watch for confirmation through volume expansion and a breakout above recent swing highs to validate the start of Wave 3.
