Novo Nordisk A/S (NYSE: NVO)

Novo Nordisk A/S engages in the discovery, development, manufacture, and marketing of pharmaceutical products primarily in Denmark. It operates in two segments, Diabetes Care and Biopharmaceuticals. The Diabetes Care segment covers insulins, GLP-1 analog, obesity, and oral antidiabetic drugs, as well as other protein related products comprising glucagon, protein related delivery systems, and needles. The Biopharmaceuticals segment offers products in the areas of haemophilia, growth hormone therapy, hormone replacement therapy, and inflammation.
Take a look at the 1-year chart of Novo (NYSE: NVO) with the added notations:

NVO has been trading sideways for almost all of 2014. In addition, since the beginning of April, the stock has found support at $42 (green) whenever that level has been approached. Now that the stock is there again, traders should be able to expect some sort of bounce. However, if the $42 support were to break, much lower prices should follow.

The Tale of the Tape: NVO has a key level of support at $42. A trader could enter a long position at $42 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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