Public trading strategy
Weight-loss drug demand exploding — scoop up Novo Nordisk on the dip
Thesis
Novo Nordisk's Wegovy pill hitting 3 million prescriptions is a massive milestone showing real-world demand is surging. Despite this, the stock has been beaten down, creating a gap between the company's fundamental growth and its recent stock price. When a company's product is selling faster than ever but the stock is out of favor, it often presents a buying opportunity for patient investors.
Strategy approach
Build a mean-reversion strategy that enters long NVO on the daily timeframe when the price is 5% below the 50-day simple moving average and RSI(14) drops below 40. Exit when the price crosses back above the 20-day SMA or after a 21-day holding period.
Markets and timeframes
NVO1D