$NVO (Novo Nordisk): 1-day. CUP & HANDLE breakout!

NVO (Novo Nordisk): 1-day

Six days later, and in my opinion it's still the best-looking chart among the large-cap names.

The price has reclaimed the green 200 MA ($47.8), which should now act as the main support zone if a pullback develops. I still think we're in Elliott Wave 3, so I'd consider a correction somewhere between $42.5 and $46.

The yellow 50 MA is sitting at $44.5 and could catch up to the 200 MA from below within the next few days, potentially forming a Golden Cross. Daily RSI is approaching 90, so the market is becoming overbought and a pullback is likely. Keep in mind that this entire impulse started below $40, so I don't expect an immediate move to the Cup & Handle breakout target around $60. A correction beforehand seems more likely.

Fundamentally, Q1 results were strong. The next earnings report is scheduled for August 5, and the most important thing to watch will be sales of its key drugs. But for me, the chart remains the most important part of the story - it looks like a breakout from a long accumulation phase following the correction that began after the all-time high just below $150 in June 2024.

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