Bulls in Charge of Novo Nordisk

Published on Friday, 15 June 2012 04:27 Written by TradersHuddle Wire

New York, June 15th (TradersHuddle.com) - Shares of Novo Nordisk A/S (NYSE:NVO) ended the trading session higher by $0.07 or 0.05% from its previous close. Novo Nordisk's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.

Novo Nordisk A/S (NYSE:NVO) develops, produces, and markets pharmaceutical products. The Company focuses on diabetes care and offers insulin delivery systems and other diabetes products. The Denmakr based company also offers biopharmaceutical products in the areas of haemophilia, growth hormone therapy, hormone replacement therapy, and inflammation.

Novo Nordisk's recent stock range was formed by a trough where calculated support was defined at $129.41 and by a peak that established the resistance level at $137.33. This range could be used by traders managing their positions.

Traders wanting to establish a position in Novo Nordisk or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: