Novo Nordisk Drops 3.77% As Technical Indicators Signal Bearish Momentum

Novo Nordisk (NVO) declined 3.77% in the most recent session, closing at $69 on volume of 7.14 million shares. This bearish move prompts a comprehensive technical assessment across multiple methodologies to gauge trend dynamics and potential inflection points.
Candlestick Theory
Recent candlestick patterns reveal a bearish signal formation. The July 23rd 4.87% surge on heavy volume (11.98M shares) formed a robust bullish candle, but the subsequent three sessions established lower highs and lower lows, culminating in the July 28th down candle that breached the immediate support near $70. This price action suggests weakening momentum, with key resistance now at $71.28 (July 28th high) and support near $68.47 (July 28th low). A close below $68.50 would invalidate the near-term bullish structure established since the mid-May low.
Moving Average Theory
The 50-day moving average (~$69.50) recently crossed below the 100-day MA (~$70.20), while the 200-day MA (~$77.80) maintains a descending trajectory. The current price trading below all three major moving averages confirms the entrenched bearish trend. Notably, the 50/100-day death cross preceded the recent selloff, and failure to reclaim the 50-day MA suggests continued downside pressure. A sustained close below $69.50 would reinforce bearish control.
MACD & KDJ Indicators
The MACD histogram has turned negative after a bearish crossover, signaling fading momentum. Concurrently, the KDJ oscillator shows the %K line (19) crossing below %D (35) from oversold territory—typically a bearish continuation signal. While both indicators align in suggesting downside momentum, the KDJ's oversold condition warrants monitoring for potential oversold bounce triggers near key support zones. The absence of bullish divergence suggests no imminent reversal.
Bollinger Bands
Price recently touched the lower Bollinger Band ($68.47) as volatility expanded, evidenced by the band width increase from July 22nd-25th. This rejection from the lower band typically indicates oversold conditions but requires confirmation. The July 28th close near the lower band amid expanding volatility suggests downward momentum may persist, with a break below $68.50 potentially triggering accelerated selling. Band contraction below $69 would signal reduced volatility and potential consolidation.
Volume-Price Relationship
Volume surged 45% on July 23rd during the 4.87% up-move, validating bullish conviction. However, the subsequent 3.77% decline on July 28th occurred on relatively lower volume (-3% vs prior session), suggesting limited bearish follow-through. This divergence may indicate selling exhaustion near $68.50 support. Sustainability of downward momentum requires higher-than-average volume confirmation on breaks below key supports.
Relative Strength Index (RSI)
The 14-day RSI reading of 38 approaches oversold territory but remains above the critical 30 threshold. While not yet signaling oversold conditions, the RSI has diverged positively from price—making lower lows while price established higher lows from May to July—suggesting underlying strength. A break below RSI 30 would signal severe bearish momentum, whereas a reversal above 50 could precede price recovery.
Fibonacci Retracement
Applying Fibonacci to the primary downtrend from the August 2024 high ($139.16) to April 2025 low ($58.08), key retracement levels are $77.21 (23.6%) and $89.05 (38.2%). Current price action below the 23.6% retracement confirms dominant bearish control. For the intermediate recovery wave from $58.08 to the July peak ($71.28), the 38.2% retracement sits at $66.24. The July 28th low of $68.47 held above this level, with a break below potentially targeting the 50% retracement at $64.68.
Confluence occurs at the $68.50 level, where candlestick support, Bollinger Band touch, and the 38.2% intermediate Fibonacci retracement converge—suggesting a critical battle between bulls and bears. However, the bearish alignment of moving averages, MACD crossover, and KDJ continuation signal tilts probability toward downside resolution unless volume-supported buying emerges above $70.00. Significant divergence appears between RSI's positive structure and short-term price action, potentially foreshadowing bear exhaustion near $68.50-$69.00.