Novo Nordisk Stock Analysis: Key Support and Resistance Levels Ahead of Earnings

Novo Nordisk shares have experienced a sharp decline, dropping around 42% since their July peak and currently trading at $83.07 per share. With earnings approaching, investors are closely watching critical support and resistance levels to determine the stock's next move.

Technical Analysis: Key Support at 200-Day Moving Average

Looking at the weekly chart, Novo Nordisk's stock has pulled back to the 200-day moving average (200MA), where it has recently bounced. This $74-$78 support zone will be crucial leading into earnings:

• If support holds, the stock could stabilise and potentially rebound.
• A break below $74 could trigger panic selling, potentially driving prices lower toward the $66-$69 range—a further 20% decline from current levels.

However, technical indicators suggest that Novo Nordisk stock is oversold, which may provide short-term support throughout February.

Oversold Signals Could Fuel a Rebound

• Stochastic Indicator: Showing a possible bullish divergence, indicating a potential reversal.
• RSI (Relative Strength Index): Oversold since December 16, with signs of an upward move last week.

If earnings results exceed expectations, these oversold signals could fuel a strong upside recovery.

Upside Targets to Watch

Should Novo Nordisk stock gain momentum, key resistance levels to monitor include:

• $85 – Initial upside target.
• $93 – Next resistance zone.
• $100 – Psychological level and major breakout point.

Final Thoughts

Novo Nordisk's stock is at a critical technical juncture, with both bullish and bearish scenarios in play ahead of earnings.

• Bullish Case: A positive earnings report, combined with oversold technicals, could trigger a recovery toward $85-$100.
• Bearish Case: If support at $74-$78 fails, a deeper correction toward $66-$69 may unfold.

Investors should closely watch the earnings report and price action for confirmation of the next move.

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