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.
NOV trade ideas
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.
Closing gapOnce more I'm trying to buy the break of 244 with stop at 242, with first target at 262 and a trailing stop at 260. Second target at 280 and trailing stop at 278.
Closing the gapBuy the break of 244, first target 262 and second target 280. Stoploss at 242. Good luck
Novo Nordisk Rebound (monthly)Novo Nordisk recently rebounded from an area where the long term trendline and a previous high came together to provide technical support. Speculative targets of a long position can be found from the 300 area upwards with stops around the 200 mark. But building a long term position with stops around 170 area where a historic low should provide support after a trendline breach and a target well above the alltime high at 420 can provide a much better risk reward ratio.
