Public trading strategy
Wegovy prescriptions explode while stock sits at a discount — long Novo Nordisk
Thesis
Novo Nordisk's Wegovy pill hitting 3 million prescriptions is a massive proof-of-concept that consumer demand for their products is only accelerating. If the stock has been beaten down recently despite this roaring fundamental success, it implies Wall Street is being too pessimistic. As the market realizes the strength of these sales numbers, investor sentiment should shift, driving the stock price back up to reflect its true growth.
Strategy approach
Build a trend-following strategy that enters long NVO on the Daily timeframe when the 14-day RSI crosses above 50 while the MACD line crosses above the signal line. Use a 10% trailing stop to manage risk.
Markets and timeframes
NVO1D