Novo Nordisk Shares Slide 8.27% Over Three Days Amid Technical Bearish Signals

Novo Nordisk (NVO) declined 3.47% to $74.34 in the most recent session, marking its third consecutive daily loss with an 8.27% cumulative decline over this period. This price action occurs within a broader technical context characterized by conflicting signals between bearish momentum indicators and emerging oversold conditions, warranting a multi-indicator assessment.
Candlestick Theory
The three-day decline formed three consecutive bearish candles with progressively lower closes ($79.83 → $77.02 → $74.34) – a pattern resembling Three Black Crows. This suggests persistent selling pressure following the recent peak at $81.44 on 2025-06-12. Immediate support is observed near $74.14 (2025-06-17 low), aligning with the psychological $74 level. Resistance is firm at $78.38 (2025-06-16 high), reinforced by the $79.92-$81.44 consolidation zone from mid-June. A decisive break below $74.14 may expose the $72.00-$72.65 support area from early June.
Moving Average Theory
The 50-day SMA (approximated at $76.80) and 100-day SMA (∼$78.20) both slope downward, reflecting deteriorating intermediate momentum. The current price trades below these averages, confirming near-term bearish control. Longer-term sentiment remains guarded as the 200-day SMA (∼$86.50) hovers well above the spot price, though its positive slope persists. A sustained recovery would need to reclaim the 50-day SMA, now acting as dynamic resistance.
MACD & KDJ Indicators
MACD (12-26-9) resides in negative territory with the signal line above the MACD histogram – a configuration signaling bearish momentum. Concurrently, KDJ oscillators reflect oversold extremes: K-line dipped below 20 and the stochastic %D nears 15. While MACD’s bearish alignment suggests further downside risk, KDJ’s deeply oversold state implies increased vulnerability to a corrective bounce. This divergence between trend (MACD) and momentum (KDJ) creates conflicting short-term signals.
Bollinger Bands
Bands expanded notably during the three-day sell-off, indicating volatility surge. Price breached the lower band ($75.10 estimate) on 2025-06-17, closing near this boundary ($74.34). Historically, such deviations often precede short-term mean reversion, though extended breaks below the lower band can persist in strong downtrends. Watch for band contraction or a price close back inside the bands to signal stabilization. The 20-day SMA ($77.25) anchors the structure as resistance.
Volume-Price Relationship
Down days consistently exhibited elevated volume (avg. 7.77M shares vs. 30-day avg. ∼7.5M), validating bearish conviction. However, volume on the most recent decline ($74.34 close) was lower than during the June 10 rally (13.08M shares). This divergence suggests waning selling intensity near the $74 support. Sustainability of further downside would require volume expansion; failure to do so may undermine bearish momentum.
Relative Strength Index (RSI)
The 14-day RSI (∼28.5) entered oversold territory (<30), reaching its lowest level since mid-May. While this signals extreme downward momentum, oversold RSI readings during established downtrends – like the current 50-day SMA breakdown – can persist. Traders should treat this as a warning of potential exhaustion rather than an immediate reversal signal. A move above RSI 35 would be the first indication of bearish fatigue.
Fibonacci Retracement
Using the swing low of $64.04 (2025-05-12) and high of $81.44 (2025-06-13), key retracements are:
38.2% → $74.79 | 50.0% → $72.74 | 61.8% → $70.69.
Price recently breached the 38.2% level ($74.79) and hovers near it. Confluence exists here with horizontal support at $74.14 and the psychological $74 mark. The 50% retracement ($72.74) represents the next critical support, aligning with the June 5 low ($72.32). Bearish momentum would strengthen on a sustained break below $72.74.
Confluence and Divergence Observations
Confluence at $74.00-$74.80 (38.2% Fibonacci, psychological level, June 17 low) makes this a pivotal support zone. Divergences include oversold KDJ/RSI readings conflicting with bearish MACD and moving average alignments, while volume patterns lack conviction at current support. A failure to hold $74.00-$74.80 may accelerate declines toward the 50% Fibonacci ($72.74) and 61.8% ($70.69) levels. Conversely, a volume-supported rebound above $76.62 (June 16 low) could relieve immediate pressure and challenge the 50-day SMA.