• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Why Novo Nordisk’s Stock Price Recovery Makes It a Promising Buy
Stock

Why Novo Nordisk’s Stock Price Recovery Makes It a Promising Buy

by May 7, 2024
by May 7, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Novo Nordisk (NVO) reported Q1 earnings on May 2. Even though it was a positive report, sales of its weight-loss drug Wegovy came in below expectations, causing the NVO stock price to fall lower.

The selloff may have been an initial and short-lived reaction, as NVO pivoted and gapped up on Monday. Maybe investors realized that the stock was a bargain, given that overall sales are strong, as are sales of Ozempic, its diabetic drug. 

The stock was filtered in the StockCharts Technical Rank (SCTR) crossing scan, which looks for stocks crossing above the 76, 79, and 80 levels. The logic behind the scan is to find stocks that are beginning to gain strength and could potentially be good candidates to add to your portfolio.

Novo Nordisk’s Technical Outlook

Follow the live chart.

Let’s analyze the charts of Novo Nordisk stock.

The five-year weekly chart of NVO below shows the stock is trending upward, particularly since October 2022.

CHART 1. WEEKLY CHART OF NOVO NORDISK. The stock price has been trending higher and is now pulling back. Could it break out higher and reach its all-time high?Chart source: StockCharts.com. For educational purposes.

For the most part, NVO has traded above its 20-week simple moving average (SMA). The stock pulled back while the overall market was pulling back. What’s interesting in NVO’s pullback is that it started looking like a flag pattern, but then moved sideways.

Follow the live chart.

The daily chart below shows a more granular picture. The upward trend stalled, but recovered. The stock price is at its 50-day SMA with slightly higher volume.

CHART 2. DAILY CHART OF NOVO NORDISK. If the stock price moves above the 50-day moving average on strong follow-through, the price could reach and move above its all-time high.Chart source: StockCharts.com. For educational purposes.

The relative strength index (RSI) in the lower panel is slightly above 50, indicating that, if the stock moves higher, it has room to move before hitting overbought territory. The SCTR line in the top panel has crossed above the 70 line, another positive for the stock.

If NVO continues moving higher, accompanied by a rising RSI and SCTR, the odds of the stock price hitting its all-time high are good. If the upward price movement has strong follow-through, the stock could also hit new all-time highs.

With all stocks, you’ll have to look at the other side of the coin. What if NVO fails to hold the support of its 50-day SMA? It could fall to its 100-day SMA, which at this point coincides with previous support levels. If the SCTR dips below 50 and RSI moves below 30, the probability of an uptrend will reduce significantly.

The Takeaway

When you see a stock you like, it’s a good idea to add it to one of your ChartLists. All charts may not move in the direction you expect them to go, but the weekly and daily chart of NVO are worth watching. Novo Nordisk’s stock has potential to rise further and, if it does, your portfolio could get a nice boost.

SCTR Crossing Scan

[country is US] and [sma(20,volume) > 100000] and [[SCTR.us.etf x 76] or [SCTR.large x 76] or [SCTR.us.etf x 78] or [SCTR.large x 78] or [SCTR.us.etf x 80] or [SCTR.large x 80]]

Credit goes to Greg Schnell, CMT, MFTA.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Three Stocks to Watch This Earnings Week
  • The SCTR Report: Carvana Stock Makes It To Top of the Podium Today
  • Finding Leaders and Bullish Signals on the Price Chart
  • Why the Stock Market is SO Confusing Right Now
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Former Starbucks CEO says company needs to revamp its stores after big earnings miss
next post
Here’s what GOP rebels want from Johnson amid threats to oust him from speakership

You may also like

Ready Yourself for 2024 With Macro to Micro Analysis

December 29, 2023

Sector Spotlight: Stocks vs. Bonds — Monthly Trends Revealed!

February 7, 2024

Trade War Panic: Are International Stocks the Safer Bet Now?

March 4, 2025

What Bitcoin Is, and How That Has Changed

September 22, 2023

What Sector Rotation Says About the Market Cycle Right Now

May 15, 2025

Performance Profile Paints Different Pictures for Commodity and Equity ETFs

March 28, 2025

Mega-Caps Weakening, More Trouble Ahead

February 21, 2025

Why NVDA’s Stock Price Shift Could Be Your Gain!

February 11, 2025

Stock Market Panic: Why Strong Jobs and Inflation Signal Trouble...

January 10, 2025

Hindenburg Omen Flashes Initial Sell Signal

May 31, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    S&P 500 Earnings 2024 Q3: Still...

    January 10, 2025

    An Indicator to Define the Trend...

    March 23, 2024

    Find Trades Using These POWERFUL MACD...

    July 17, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here