Technical Update - Novo Nordisk: Stretched uptrend could continue higher Technical Update - Novo Nordisk: Stretched uptrend could continue higher Technical Update - Novo Nordisk: Stretched uptrend could continue higher

Technical Update - Novo Nordisk: Stretched uptrend could continue higher

Equities 3 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Novo Nordisk short-, medium- and longer-term technical outlook

Novo Nordisk delivered blow out earnings this morning pre-market.

The uptrend seems to continue.
If Novo is closing around current levels and the RSI is closing back above the 60 threshold i.e., back in positive sentiment, Novo share price is likely to move to test all-time highs at around 742.20

To reverse the short-term uptrend a close below 655.40 is needed.

Source all charts and data: Saxo Group
Medium-term – weekly chart: RSI values have been declining for almost 2 years indicating a stretched uptrend. However, if the uptrend is intact and a close below 614 is needed to demolish that.

If Novo is performing a new higher close above 742.20 the RSI divergence could be cancelled thus strongly indicating the uptrend is to continue 
Longer-term - monthly chart: RSI divergence is close to be traded out. That situation occurs if RSI is closing above 87.61 which is quite close. If that scenario plays out the could be further upside potential for Novo.

However, the monthly RSI is in overbought territory and traded volume has been declining for several years indicating a looming (big) correction. However, a top and reversal pattern is not yet formed adn to reverse the longer term uptrdn a clsoe below 504.40 is needed. 
Author is holding a position in Novo Nordisk

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