Novo Nordisk (NVO), the Danish pharma giant best known for diabetes and weight-loss drugs, has dropped nearly 70% since its June 2024 all-time high amid heavy competition and profit warnings.
But now, the stock looks attractive again, trading just below the 0.5 Fibonacci retracement from its all-time low to all-time high, a zone that acted as support in 2021–2022, before NVO’s parabolic run.
There are additional bullish signals: A double bottom structure has formed and a bullish bat harmonic pattern is present.
Notably, NVO is now priced far below its intrinsic value, estimated near $100 per share, suggesting severe oversold conditions.
Despite forming a death cross on the weekly timeframe, Novo Nordisk has a history of this signal appearing after the bottom is already set. This has taken place five times, including in 2025, and every instance has correctly signaled trend exhaustion.
What’s important is the tightening lag between the bottom and the death cross: From about four months for the first two occurrences, down to three months for the third, two months for the fourth and only a month for the most recent one.
Suggested Setup
- Entry: $45–$50.40
- Stop Loss: $41
- Take Profit 1: $56.65
- Take Profit 2: $74.12
- Take Profit 3: $91.59
- Take Profit 4: $113.21
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