Technical Update - Novo Nordisk: A lot of talk about side effects but how is the technical picture? Technical Update - Novo Nordisk: A lot of talk about side effects but how is the technical picture? Technical Update - Novo Nordisk: A lot of talk about side effects but how is the technical picture?

Technical Update - Novo Nordisk: A lot of talk about side effects but how is the technical picture?

Equities 1 minute to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  For a third time Novo Nordisk is bouncing from key support at 1,060. What if the support is broken? How much could the share price drop?

Novo Nordisk seems to be bouncing a third time from support at around 1,060. Twice in past two days.
RSI is still showing positive sentiment but with divergence. RSI has formed a falling Wedge like pattern and if breaking bullish out it could be first indication that Novo is to resume uptrend.
However, a share price close above 1,130 is needed to confirm uptrend.

A close below 1,060 is likely to fuel a sell-off down to 1,015-965,50 and the 200 daily Moving Average.
If closing below 1,060 RSI is likely to close below 40 threshold thereby confirming the negative sentiment.

Medium-term lower rising trendline is being tested. A close below could be an indication that the medium-term uptrend is in for a correction
Weekly chart is showing divergence indicating a looming correction.
However, if Novo closes above 1,130 and if RSI closes above 60 threshold, Novo is likely to make a new all-time high.



Source all charts and data: Saxo Group
Author is holding a position in Novo Nordisk A/S

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