Novo’s latest weakness could be setting up an interesting opportunity on the downside.

Novo Nordisk (NVO) remains under pressure following its Capital Markets Day, where management laid out plans to launch at least five potential blockbuster medicines by 2030 and expand the company beyond its traditional obesity and diabetes businesses. Investors were underwhelmed by the longer-term strategy and questioned whether the pipeline will be enough to offset growing competition and eventual patent expirations for Ozempic and Wegovy. Adding to that pressure today, Viking Therapeutics reported encouraging obesity-drug data while Novo shares continued to weaken.

Technically, NVO is showing a clear bearish setup. The stock is trading below its 8-, 21- and 55-day EMAs, while the PPO remains negative and continues to deteriorate. ADX has strengthened to 21.66, with −DI at 44.66 versus +DI at just 15.75, showing that sellers remain firmly in control. Relative strength versus the S&P 500 is also declining. RSI has fallen to 30.41, putting the stock close to oversold territory, so we could see a short-term bounce. Even so, the broader technical picture continues to favor the downside, making NVO a potential put candidate as long as the bearish trend remains intact.

Wishing you the very best, 

Wendy

Each ticker has its own set of patterns, like a personality, that it displays pretty consistently. Once you unlock this “DNA” as it were, you can really exploit those moves and even the moves that are out of character for that ticker. I built an indicator that spots those patterns and lets you know when a trade is setting up. If you want to add it to your charts, click here.