NOVO has developed an H&S formationAs others have also mentioned on Trading View, NOVO has developed an H&S formation.
The formation is to some extent supported by volume.
Volume should be large when forming the left shoulder 1, as well as when forming the head 2, and when the price goes down at the right shoulder 4, but when forming the right shoulder the volume should be low 3. It is not.
Since May, the volume balance has been negative, i.e. high volume at the price bottom and low volume at the price peak.
At 794, there will be a significant break of 3%, especially if it is supported by high volume.
There is no significant break yet.
The object is heading towards 629.
An H&S formation is a reversal formation. NOVO has been in a bullish trend, according to MA. However, the price is now below SMA 200.
The price momentum indicators go from sell to buy within a month on Trading View.
The price is well below a red cloud in Ichimocu.
It is not possible to say now whether we will have a significant break down or whether the price will recover. The forecast will depend on this.
Fundamentally, analysts are predominantly positive about the stock.
Many companies would like to enter the obesity market, but there are far from good results in a phase 1 study to a finished drug, if it becomes a drug at all.
Disclaimer: I have a relatively large position in the stock, which I bought when the shares plunged during the covid19 epidemic. I have sold 1/4 share when the price had tripled, so I am thinking of sitting still now even in the face of the technical picture - I am long.
In the past, price has fluctuated between two pivot lines at times. Then I have swing traded NOVO.
NB: Remember you must do your own research and assessment before buying and selling.
