Novo Nordisk Drops 4.78% Amid Heavy Selling Pressure As Technicals Turn Bearish

Novo Nordisk (NVO) declined 4.78% in the latest session, closing at $67.35 after trading between $66.87 and $68.875. This bearish move coincides with elevated volume, signaling strong selling pressure. Below is a technical synthesis of key indicators to contextualize this development.
Candlestick Theory
Recent sessions reveal a deteriorating structure for Novo Nordisk. The June 24th session formed a bullish candle (high: $71.04, close: $70.73), but this was immediately engulfed by June 25th’s bearish candle, which closed near its low of $67.35 amid high volume. This rejection near the $71.04 peak establishes a resistance level. Immediate support resides at $66.87 (June 25th low), with a critical floor at May’s swing low of $63.13. Failure to hold $66.87 may accelerate downside momentum.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages depict entrenched bearish alignment. All three MAs trend downward, with the current price trading below each—classic distribution structure. The 50-DMA (approx. $72) now caps rebounds, while the widening gap between shorter and longer-term averages confirms persistent selling pressure. Until price reclaims the 50-DMA, the path of least resistance remains southbound.
MACD & KDJ Indicators
The MACD histogram remains entrenched below its signal line, reflecting sustained bearish momentum. Concurrently, the KDJ oscillator (particularly the %K and %D lines) hovers near oversold territory but lacks bullish crossover confirmation. Both indicators align with near-term downside bias, though deeply oversold KDJ readings could foreshadow a technical rebound if momentum divergences emerge.
Bollinger Bands
Price currently tests the lower Bollinger Band ($67–$68 range), suggesting oversold intra-trend conditions. However, volatility expansion is evident as bands widen following June’s sharp selloff. The absence of a price/band divergence implies limited reversal signal reliability. Sustained trading below the lower band may indicate capitulation, while mean-reversion toward the 20-day midline ($69–$70) would face stiff resistance.
Volume-Price Relationship
Volume dynamics validate recent weakness. The June 25th selloff occurred on 13.6M shares—over 80% above the 30-day average—confirming distribution. Similarly, the June 10th rally to $79.33 (5.13% gain) featured robust volume (13.1M shares), but subsequent declines saw equal or higher volume, indicating net supply absorption. This volume skew toward down days reinforces negative bias.
Relative Strength Index
The 14-day RSI (~28) approaches oversold territory (<30), though not yet signaling a reversal. Historically, Novo Nordisk’s RSI has oscillated near oversold zones (e.g., May 2025) without immediate recoveries, suggesting momentum can remain depressed amid structural downtrends. Traders should await bullish divergence or RSI recovery above 30 for contrivial signals.
Fibonacci Retracement
Applying Fibonacci to the recent rally leg (swing low: $63.13 on May 16, swing high: $71.04 on June 24), key retracement levels emerge at $67.09 (38.2%), $66.08 (50%), and $65.08 (61.8%). The current price ($67.35) hovers near the 38.2% level. Failure here exposes $66.08 (50%) and the psychologically significant $65 zone—aligning with May’s support.
Confluence and Divergence Synthesis
Confluence of bearish signals is notable: rejection at moving averages, Bollinger Band breakdown, and volume-fueled selling validate the downtrend. MACD/KDJ shows no meaningful divergence to challenge the bear thesis. However, oversold RSI and proximity to the 38.2% Fibonacci level suggest tactical support near $67.09–$66.87. A decisive close below $66.08 would likely catalyze downside toward the $63–$64 strategic support. Given prevailing indicators, Novo Nordisk remains vulnerable to further weakness absent a volume-backed reversal above $70.