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Technical Update - Novo Nordisk testing key support, down trend in the cards. Vestas Wind in down trend. DSV strong uptrend
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Novo Nordisk is testing key support at 1,050. Close below can lead to heavy sell-off
Vestas Wind in downtrend short-term testing key support in medium-term range
DSV in strong uptrend both short- and medium-term
OMX C25 Index in down trend close to test key support
Novo Nordisk dipped yesterday below key strong support at around 1,050 for the fifth time only to bounce back and close above.
However, at the time of writing sellers are once again trying to push it below the support and this time they seems to be more succesful.
Share price is below 21 and 55 daily Moving Averages which are both declining and below 100 Moving Average and RSI is showing negative sentiment after closing below the 40 threshold a few days ago, suggesting Novo is likely to trade lower.
If Novo closes below 1,050 downtrend is confirmed
If that scenario plays out a sell-off down to around 970-950 could be seen.
To resume uptrend a close above 1,113.60 is needed.
Medium-term Novo has broken below upper rising trendline. RSI has been showing divergence at the peak indicating a weakening of the uptrend and a possible correction.
A daily closed below 1,050 could result in a larger correction to test the lower medium-term rising trendline
Vestas Wind is short-term in a confirmed downtrend trading in a steep falling channel like pattern.
Medium-term Vestas is close to breaking bearish out of sideways range. A weekly close below 173 combined with weekly RSI closing below 40 will confirm downtrend.
A down trend that could take Vestas to October 2022 levels around 131.
To establish a medium-term uptrend a close above 215.50 is needed.
DSV uptrend seems to be continuing. On both the daily and weekly charts RSI is showing positive sentiment with no divergence supporting the bullish trend that could take DSV higher. No strong resistance until around 1,527.
To demolish this bullish picture a close below 1,309 is needed.
OMX C25 Index
Novo is the biggest constituents in the OMX C25 Index and if Novo shares are tanking it will drag on the Index.
OMX C25 is in a short-term down trend. Key support at 1,759. A close below can lead to wide spread selling in C25 Indices.
However, Danish stocks and its Index are of course also influenced by what is going on in the rest of the European Equity markets.
Across the board in Europe major Indices look heavy and are testing key support levels. See Technical Update on DAX, AEX25 and CAC40 here: Technical analysis DAX AEX25 BEL20 CAC40 in down trends
Novo is the biggest constituents in the OMX C25 Index and if Novo shares are tanking it will drag on the Index.
OMX C25 is in a short-term down trend. Key support at 1,759. A close below can lead to wide spread selling in C25 Indices.
However, Danish stocks and its Index are of course also influenced by what is going on in the rest of the European Equity markets.
Across the board in Europe major Indices look heavy and are testing key support levels. See Technical Update on DAX, AEX25 and CAC40 here: Technical analysis DAX AEX25 BEL20 CAC40 in down trends
Author us holding a position in DSV
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