NVO trade ideas
Long Term: looking for an entry point on this beautiful stockNovo Nordisk is one of the world leaders in the medical treatment of diabetes.
It also researches, develops and markets treatments for obesity. It is a fast-growing sector with the rise of fast food and the development of emerging countries.
However, the field is becoming more and more competitive, especially in the US, which has meant slower growth for the future of Novo Nordisk. Until now, she was considered a "cash cow".
Let's see if I can drink her milk :-)
NVO Breakout to All-Time HighIn this chart we're looking at NVO on the 1W chart as price has consolidated into an ascending triangle . Price has broken through the horizontal boundary around $58. After price prints a 1W candle (1 day left) through $59.77 breakout will be confirmed.
This ascending triangle has a price target of around $85 for about a ~46% gain.
Price has good momentum as it has found support on the 200EMA and is breaking out of its chart pattern boundary well above the 200EMA.
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$NVO Breakout possible for Nova NordiskEntry level $59.50 = Target price $65.50 = Stop loss $57.60
Stock is on the verge of a multiyear breakout from 2015.
Ascending triangle formation bullish.
Odds are that the stock breaks out rather than make a triple top.
P/E ratio 23.
Company profile
Novo Nordisk A/S is a healthcare company, which engages in the research, development, manufacture, and marketing of pharmaceutical products. It operates through the following segments: Diabetes & Obesity Care, and Biopharmaceuticals. The Diabetes & Obesity Care segment covers products for insulin; GLP-1 and related delivery systems; oral antidiabetic products; and obesity. The Biopharmaceuticals segment offers products for haemophilia; growth hormone therapy; and hormone replacement therapy. The company was founded by Harald Pedersen and Thorvald Pedersen in 1925 is headquartered in Bagsværd, Denmark.
Novo NordiskNovonordisk scenarios in case of 2020 recession.
Great lean healthcare giant. great long term wealth storage (10+ years)
-50% in a long recession
average 3year recovery to ath from recession or internal problems.
NVO, Novo Nordisk A/S - Potential Breakout on Ascending TriangleNYSE:NVO
Very close to the breakingout of this ascending triangle, in this case pattern of potential continuation of the trend, after a reversal already occurred in 2018.
If it were to break up, the first target would be $58.
The management of the position, the definition of the entry point and of the exit point in case of loss are what count more than anything else, also of the strategy.
finance.yahoo.com
Lets go backWhy is this so low? Because of a stupid twitter thing from Trump. All the fundamentals are their, and this is going back to 345 DKK soon. Give it a week or two.
Novo divergence indicating uptrend, price action needs momentumJust broke trend-resistance, bu needs more momentum in order to comply with normal divergence indicating uptrend is coming.
NOVO_B - longWhen markets open Monday tomorrow (28. Apr 2019) Wait for confirmation for a LONG position with a 3 to 1 risk.
NOVO_B - BearishNovo will soon hit prev. high. It's a strong resistance line. A cypher pattern is also nearly clear that also can make it go down. Also hitting the 1.414 fibonacci number from previous high to low. MA 200 also started trending down.
Shorting at 355
Stop loss : 377.5
Take profit : 310
Long in NVO Established There are several aspects to this chart- the wave analysis is certainly up for debate, but what remains is improving fundamentals.
On this chart we have a corrective sequence ABC starting in 2014 and concluding in early 2017. On this chart, we can see the 30 day MA volume skyrockets in the beginning of 2017. This corresponds to the timing of the Obama administration focusing their healthcare attacks on big pharma, specifically drug pricing. We can even see a faint busted head and shoulders on this chart, with the right shoulder being broken by terrible guidance on earnings
At the peak in 2015, we also see a peak in operating profit margin. Over the next 12 month fundamentals began to draw back with book value/share, liquidity ratios, and margins all slowly declining. As Obamacare got pushed through US congress (where over 50% of revenue is earned), the outlook looked bleak. Then the Man who lives above the Guchi Store was elected, and big pharma saw hope on the horizon and began surging higher. This was a false bull market though; margins and liquidity ratios were not improving for NVO.
Then the surprise happened, President Trump began attacking pharma. Combined with the already volatile stock market NVO plunged to a correction right at the .618 fibonnaci level, if it maintains this as the low a perfect sign that the 2 impulse wave has just completed.
Where we stand now:
Novo Nordisk, one of the largest pill pushers was forced to lower outlooks with increasing competition from generics. With this pressure, the company has been forced to cut many US jobs and refocus R&D spending, rendering some patents and research useless. Over the last few years they've been forced to impair assets for use on their income statement, but NVO still maintains a 2.29 P/Tangible Book ratio, (better than peers: GSK, BMY, LLY). Gross margins have begun improving and P/S has landed at one of the lowest, if not the lowest level in the peer group. Improvement on the liquidity measures could send this stock flying, but most importantly is the deadlock that could ensue in congress. Recently one of the up-and-coming generics plunged as the FDA put a hold on their diabetes drug trial.
I took a long position in NVO on 11/27 and plan on holding this until I either get stopped out at 44 or we rally to previous highs
NVO - good fundamentalsNVO scored high on my picking software, mostly due to its good fundamentals. I look forward to see how the stock will perform in the future. Tradingview indicator shows 10 indicators to sell and 4 to buy.
18 Month take on NovoI have no interest in this stock myself, testing myself on this stock while trying to guide a friend of mine.
Happy trading
NOVO_B Bearish
Right before Q1 Novo_B is displaying, for medium term, further bearish trend. Take note of the bullish divergence that could bring the best scenario for the Q1 day- the level of 315 kr. The monthly and weekly charts are bearish and probably further downside action. As for the harmonic patterns I am looking for an ABC bearish pattern where the swing BC will end on around 224 kr level or so (notes on chart). The breaking of the macro support trend line is something to watch closely.
NOVOB: Multiple patterns confirming big short opportunityI know most folks on this website are not trading NovoB but it is always nice to see multiple patterns coming together to confirm a trade. So we have a potential CD leg forming on NovoB with a c.-40% downside target to the congestion zone between 180 to 200. What is interesting the completion of a 135 pattern which forms the BC leg of the larger ABCD. Still looking for those longs but this market is not making it easy!
Long-term short NVONYSE:NVO
WHY
- in sync with the broader market, topping pharma stocks demonstrate major divergences shown in chart
- I see confirmation on W frame in form of bearish engulfings and overall look and feel of the pattern
NYSE:NVO
TRADE DURATION and PROFIT TARGET
- as a target I will be looking at least for 100% distance of the 1st wave down
- this is where the price should meet 200MA on M basis sometime in 2020
HOW
- short stocks with risk reward 5.7
- avoid options as this is long-term
- consider shorting other pharma stocks or ETF to further exploit the move
ENTRY
- short immediately based on W chart, D frame does not add clarity
NOVOBC- High & Tight Flag bullish continuation Nice set up pattern in form of high & tight flag bullish continuation. The level 285 ish held nicely and expecting the high 296.80 to be taken out (resistance). A surge in price and volume would be nice confirmation for the next level.
