Long-term short NVONYSE:NVO
WHY
- in sync with the broader market, topping pharma stocks demonstrate major divergences shown in chart
- I see confirmation on W frame in form of bearish engulfings and overall look and feel of the pattern
NYSE:NVO
TRADE DURATION and PROFIT TARGET
- as a target I will be looking at least for 100% distance of the 1st wave down
- this is where the price should meet 200MA on M basis sometime in 2020
HOW
- short stocks with risk reward 5.7
- avoid options as this is long-term
- consider shorting other pharma stocks or ETF to further exploit the move
ENTRY
- short immediately based on W chart, D frame does not add clarity
