Potential double bottom for NVO

We received a request for Novo Nordisk A/S (NVO).

NVO may be forming a tactical double bottom from its August and November 2025 lows near 45-43. Higher lows throughout 2025 on intermediate-term price momentum as measured by the 14-week RSI set up a positive divergence against the lower lows on the stock, supporting the case this potential double bottom. The early 2026 breakout above bear market resistance just below 50 on the RSI provides a potential bullish leading indicator for an absolute price breakout from the developing double bottom pattern.

A decisive rally above 62.32 would confirm the double bottom for NVO and suggest upside potential to chart resistance, the double bottom pattern count, 38.2% retracement of the mid 2024-late 2025 decline, and the flattening 200-week moving average (WMA) from 77.87 to 83.49.

Until this breakout occurs, the key for NVO is holding the mildly improving 13-, 26-, and 40-WMAs from 59.03 down to 51.85 to increase the potential for a reversal of the downward trend from mid 2024.

Interestingly, lower highs on weekly RSI provided a bearish divergence as NVO traded to higher highs in mid 2024. This deterioration in price momentum coincided with the formation a March into October 2024 head and shoulder top that preceded a breakdown and big decline for this stock.

Chart 1: Novo Nordisk A/S (NVO) (top) and 14-week RSI (bottom)