Novartis AG (NYSE: NVS) stock price was trading in a narrow range and showcased a breakdown in the last trading session with a massive gap-down move, splitting the crucial support zone of $100, indicating that bulls were trapped and started unwinding their long positions because of fear of losing out. Furthermore, the price action shows that NVS share price fell below the key moving averages showing selling pressure in the past sessions. Moreover, the chart shows the range breakdown, which might extend toward the demand zone of $90.
Novartis AG (NVS stock) price split the $80 neckline below the 200-day EMA, showing aggressive short buildup. Sellers are looking strong and gaining traction, leading to trouble for the bulls. Furthermore, signs of a reversal from the top were anticipated, and the follow-on selling pressure may persist, and NVS stock may retest the support zone of $85 and $70 in the upcoming sessions.
Besides the technicals, as per the options chain shows that, at the strike price of $100, incisiveness between the bulls and bears was witnessed, a massive open interest of 1287 hundred shares on the call side, whereas 1405 hundred shares on the put side, shows equal interest but sellers are winning the battle and NVS stock goes in favour of the bears.
At the press time, NVS stock price is trading at $96.15 with an intraday drop of 0.01%, showing flat moves in the yesterday session. Moreover, the trading volume increased by 0.87% to 2.298 Million, and the market cap is $197.644 Billion. However, Analysts have maintained a neutral rating with a yearly target price of $107.11, suggesting volatility may persist in the upcoming sessions.
Novartis AG is a holding company that develops, manufactures, and markets healthcare products. It operates through the following segments: Innovative Medicines, Sandoz, and Corporate. The Innovative Medicines segment researches, develops, manufactures, distributes, and sells patented pharmaceuticals and comprises two business units: Novartis Oncology and Novartis Pharmaceuticals.
Will NVS Stock Retain $100 Or Slip Further?
On the daily charts, NVS stock price is lose to the make-or-break level, which, if sustained again, could lead to a rebound, whereas if it slips further amid follow on selling, it may retest the support zone of $80 in the following sessions.
Furthermore, NVS stock price slipped below the 50% Fib zone and may soon retest the 38.2% Fib zone near $88. Also, NVS stock price is heading to the lower Bollinger band, indicating a negative sentiment.
The RSI curve is in the oversold region and shows a bearish divergence, forming a negative crossover on the charts.
The MACD shows a bearish crossover and red bars on the histogram, suggesting that follow-on selling may persist and further downside toward $85 followed by $80 can be anticipated.
Summary
Novartis AG (NYSE: NVS) stock price has slipped below the neutrality and indicates a range breakdown signaling bearishness in the past sessions. Moreover, the price action suggests that follow-on selling pressure may persist, and NVS stock will retest the immediate support zone of $90, followed by $85. Additionally, NVS stock fell below the 200-day EMA, which is a negative sign for the bulls.
Technical Levels
Support Levels: $90 and $85
Resistance Levels: $100 and $110
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/06/novartis-ag-nyse-nvs-drags-below-100-what-nvs-prefers-next/