Collin Seow Remisier Blog

Novo Nordisk: Why I Think Healthcare Stock Ready for a Position Trade?

Collin Seow
Publish date: Wed, 15 May 2024, 05:59 PM
Collin Seow
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Collin Seow (CFTe,CPM) is an experienced remisier who mentor his clients to help them to build a stock portfolio.

This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

After a massive heat wave around Southeast Asia, a La Nina weather event is predicted to occur later this year.

La Nina is the phenomenon where sea surface temperatures in the Pacific Ocean drop for a prolonged period. This results in wetter conditions and cooler temperatures in Southeast Asia and Oceania.

Are you rejoicing?

Remember to bring an umbrella, and have a wider buffer for commuting!

Are you ready to have a look at the shares of Novo Nordisk?

Join me to discover why I think its shares are ready for a position trade.

Brief History of Novo Nordisk

Novo Nordisk logo

Source: novonordisk.sg/contact-us.html

Shortly after its founding in 1923, Novo Nordisk produced its insulin.

Through thorough research and development, mergers, and astute joint ventures, Novo Nordisk broke into a key market – the US.

Since then, it has grown to be the gigantic biotechnology company that you are familiar with.

Has the company been performing well financially?

Let’s find out in the next section.

 

Business Model and Financials

Novo Nordisk Income Statement

Source: tradingview.com

At this section, you’ll want to know whether Novo Nordisk has managed to grow its total revenue (shown by the bar in blue) and net income (shown by the bar in orange).

Taking a quick glance, can you tell that its total revenue has been growing every year?

With this piece of positive information, let’s have a loot at its net income.

Its net income has been on a steady growth too, with the exception of year 2019.

More significantly, its net income in 2023 had swelled by more than 50%! This is the admiration of many companies.

Business fundamentals aside.

Are the market participants bullish on its stock?

Should you be buying its shares for a position trade?

 

Technical Analysis on Novo Nordisk (NYSE: NVO)

Chart of Novo Nordisk

I’ll answer your questions in this section.

When you are looking to buy any stock of a company for a position trade, you’ll want its share price to be rising.

Can you easily tell that the share price of Novo Nordisk is in an uptrend? This can also be inferred from the number of blue (solid and outlined) candles outnumbering those in red (solid and outlined).

Next, turn your attention to these 2 indicators – the green arrow and Trend Impulse Factor.

When buying any stock for a position trade, you'll want to catch the trend early.

The presence of the green arrow indicates that.

Do you notice a green arrow under the latest candle of Novo Nordisk?

Now, let’s have a look at the color of its Trend Impulse Factor.

When the bar of its Trend Impulse Factor is dark green, it indicates the presence of momentum.

Because this is a fresh uptrend and there’s momentum, I think that the shares of Novo Nordisk is ripe for a position trade.

 

Conclusion

Source: unsplash.com

Novo Nordisk is a 100-year-old biotechnology company that continues to be innovative and enjoy financial growth.

Market participants are also fond of this stock which can be inferred from its rising share price.

In addition, Novo Nordisk’s chart (coupled with our proprietary indicators) suggests that buying its shares for a position trade is here.

Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won't have to feel in the dark and make wild guesses.

What are your thoughts?

Share your thoughts with me below!

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