Currently the weight loss drugs are having a severe loss of weightage in the corresponding indices. The poster child of weight loss and diabetes drugs 
NOV and 
LLY are seeing some of the worst drawdown in their history. Today we look at the worst of the 2 in this space which is $NOV. Novo Nordisk had a lot of missed steps in the current year, and the stock price has lost almost 70% from its peak of 148 $ in June of 2024. It has a long and painful drawdown of almost 70% from its ATH.
The downward sloping pattern is so prominent that it is hard to ignore the drawdown in this stock. But the question comes will there me more loss and pain this weight loss pioneer or there is a visible buy zone for this stock. I did some unorthodox chart today plotting the downward slopping Fib retracement by joining the tops of the recent lower highs and on the lower bound of the lower lows. We see the clear levels provided by the Fib levels. Currently the stock is at 0.786 level with price at 49 $. I think once the key psychological level of 50 $ is broken the stock can go below the 0.786 level and may touch the 1.0 Fib level which is @ around 40 $. And with 0.618 being the upper limit with price 52 $. This range was also in play during 2021 and 2022 when the stock did a year long consolidation before moving higher.
Verdict:NOV is within the accumulating zone with 52 $ as top and 40 $ as the bottom. 70 % drawdown from the top is a tempting discount on the price and a good entry point for long term.
NOV and LLY are seeing some of the worst drawdown in their history. Today we look at the worst of the 2 in this space which is $NOV. Novo Nordisk had a lot of missed steps in the current year, and the stock price has lost almost 70% from its peak of 148 $ in June of 2024. It has a long and painful drawdown of almost 70% from its ATH. The downward sloping pattern is so prominent that it is hard to ignore the drawdown in this stock. But the question comes will there me more loss and pain this weight loss pioneer or there is a visible buy zone for this stock. I did some unorthodox chart today plotting the downward slopping Fib retracement by joining the tops of the recent lower highs and on the lower bound of the lower lows. We see the clear levels provided by the Fib levels. Currently the stock is at 0.786 level with price at 49 $. I think once the key psychological level of 50 $ is broken the stock can go below the 0.786 level and may touch the 1.0 Fib level which is @ around 40 $. And with 0.618 being the upper limit with price 52 $. This range was also in play during 2021 and 2022 when the stock did a year long consolidation before moving higher.
Verdict:
NOV is within the accumulating zone with 52 $ as top and 40 $ as the bottom. 70 % drawdown from the top is a tempting discount on the price and a good entry point for long term. 
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.