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NVO bounce off of 50SMA – risk and reward

QuestionsCategory: QuestionsNVO bounce off of 50SMA – risk and reward
Adam Nelsson asked 1 year ago
Hello Pat,   NVO had a good earnings result yesterday, but the market did not like it much. The stock is down by 4.5% at 11:26 AM. I noticed the drop stopped just shy of the rising 50SMA, and thus took a position at $132.8 with a stop at $132.17. This translates into a risk of less than 0.5%, so manageable. My question to you is whether this type of entry qualifies as a CANSLIM reverse trade setup. A second remark relates to NVO's general performance: the stock is #3 (MRK is #1) in its group with a red flag on EPS.  Kind regards, Adam
1 Answers
Avatar photoOwen Staff answered 1 year ago

Hi Adam,
Pat made this video for you...
https://youtu.be/Qimei-yl9sQ