Novartis stock: buy or sell
Jul 29th, 2021
Novartis stock brief
- Novartis closed on Wednesday at $91.89 after merely moving a 0.62%.
- The stock is configuring an uptrend pattern since last March, when it bottomed at $82.29. This rally marked a 11.67% gain
- On July 20, Novartis released its Q2 financial report
- Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz.
Should I buy Novartis stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $NVS stock a buy?
Following Stock2 trading strategies, there are 2 buy setups eligible for Novartis:
Uptrend buy setup
Novartis stock is in an uptrend since last March that so far has marked a gorgeous 12.00% gain. Price marked a pull back in this uptrend at $89.14 on July 21, and since then it bounced off a 3.09%. Now, it's just 3.13% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $94.77. If you decide to enter this trade, the suggested stop loss is at $86.47
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$94.77||$86.47||8.76%|
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it scales quickly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Novartis can break to ATH any time soon, as it only needs to rise a 3.13%. Setup your buy order at $94.77 if you want to trade with this strategy. Place your stop-loss at $86.47
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$94.77||$86.47||8.76%|
Should I sell Novartis stock?
When is it time to sell Novartis stock?. Trading strategies let us to avoid impulsive decisions based on our emotions or the buzz surrounding the market. When selling, as well as buying, detailed strategies are very easy to use and are only applicable for selling shares you already own, not for shorting $NVS stock
A golden rule is that you should never mantain a trading operation that produces greater losses than those expected at the time of purchase. The moment to sell shares must always be determined by the stop-loss (automatic or manual)
Is it time to sell Novartis stock?
Currently, Novartis stock doesn't match any of our preferred sell setups, so if you own Novartis shares and your operation is in profit probably is not time to sell now
In the previous month we couldn't find any rating for Novartis
Novartis stock analysis
Novartis shares started an uptrend last March, and gained a gorgeous 11.67%. The chart shows higher peaks and higher lows, and along the way provided some buy points for those who wanted to enter. Latest pullback was on July 21, when price bounced at $89.14. Currently, the price moves in a consolidation between its last top ($94.77) and its last bottom ($89.14)
Supports and resistances
The current resistances are:
The current support levels are:
The evolution of the Bollinger Bands on the chart shows that they are quite tight (3.26%), which clearly indicates that price volatility is low. The narrowness of the Bollinger bands is generally a sign of a sharp price movement (up or down), so we must be watchful and manage our buy or sell orders correctly
Relative strength index
The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Wednesday was 53.05. Since then, Novartis shares went down a 2.40%
Novartis stock price history
Novartis went public priced at an adjusted price1 of $14.09 on Nov 1996. Since then, NVS stock surged by 552.16%, with an average of 23.01% per year. An investment of $1,000USD on the IPO would have a value of $6,521.65 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Novartis stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions release their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and many times. If you are a small investor you shouldn't invest based on these forecasts.
We don't have any target price published in the previous 30 days for Novartis.
Earnings and financials
Financial call was hosted by Novartis ($NVS) on July 20 after releasing the financial report. Novartis presented earnings of $1.66 per share on revenue of $13.0 billion. The analysts estimate was $1.52 per share on revenue of $12.5 billion.This compares to Earnings of $1.36 per share a year ago, so current EPS is a gain of 22.06%. Turnover skyrocketed a 14.39% on an annualized basis in the , from $116.2B to $132.9B last quarter.
Novartis ($NVS) is posting financial report.
Financial reporting day has a more than usual risk for stock traders as the results disclosed can jump up or down the shares price with exceptionally low liquidity and not respecting your buy/stop-loss orders. Novartis's website probably has additional information.
Important:The viewpoints written in this article are personal and not recommendations for you to buy or sell stocks. The author of this paper does not know the individual situations of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for general educational reasons only
|Wednesday, July 28th, 2021|
|Day range||$91.29 - $92.17|
|Average true range||$1.14|
|50d mov avg||$91.16|
|100d mov avg||$88.90|
|200d mov avg||$87.32|
|Earnings date||December 31st, 1969|