NVO, PFE and LLY Forecast – Pharma Stocks React to Drug Order Trump Signs

NVO Technical Analysis

Novo Nordisk finds itself a little bit bearish in the pre-market hours of Tuesday after the Trump administration has announced that they are going to change the way Americans pay for pharmaceuticals, basically making America a most favored nation status for pharmaceuticals, meaning that the American public will start paying the same prices as the rest of the world. The exorbitant prices in the United States has been a major cash cow for the pharmaceutical industry.

So, there will be a certain amount of fights, but members of Congress, even those on the far left, are starting to come on board with this idea. So, this may not just be an executive order. It might actually be something that’s codified into law. Novo Nordisk looks like it’s going to drop about a dollar or so in pre-market trading. So, it is cautious negativity. But at the end of the day, the market was in a downtrend anyway. So, I don’t know that this change is too much, at least in the short term.

PFE Technical Analysis

Pfizer looks like it will drop a bit after what was a fairly strong session on Monday. Whether or not that executive order and potential law had any influence on Pfizer is a bit difficult to really say at this point in time, but it’s very likely that this market will continue to see a lot of negativity in general, as long as there are concerns out there. Furthermore, it was in a downtrend to begin with, so let’s be honest, pharmaceutical companies weren’t exactly the place to be before this. And despite the fact that we had such a good Monday, I don’t think this is going to be anything more than a bottoming pattern at best.

LLY Technical Analysis

Eli Lilly is slightly negative in pre-market trading, but it is closer to support than the other two in this article. So perhaps this may be the most likely to bounce and continue higher. But right now, this is more or less a market that is trying to solidify some type of bottom near the $725 region. The 50-day EMA and the 200-day EMA sit right around the $815 level, but they are both flat. Really with it being that way, I suspect that we are looking at a larger consolidation area trying to play out between $700 on the bottom and $900 on the top.

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