We last checked on the charts of NovoCure Ltd. (NVCR) on Nov. 4 where we wrote that, "If you are still long NVCR from early October then I would continue to hold those positions but raise stop protection to a close below $110 now."
Let's check out the charts again. In this daily Japanese candlestick chart of NVCR, below, we can see a large red candle (bearish) with the entire range and close below the cresting 50-day moving average line.
Trading volume has been increasing in recent days and the On-Balance-Volume (OBV) line has weakened. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since December and is now close to the zero line.
In this daily Point and Figure chart of NVCR, below, we can see how prices broke below a large area of activity which should now act as resistance. A downside price of $151 was quickly reached but there is no nearby support on this chart. Next, we'll check out a weekly chart.
In this weekly Point and Figure chart of NVCR, below, we can see a potential downside price target in the $90 area.
Bottom-line strategy: Traders still long NVCR should take the money and run to the sidelines. Keep your powder try for now.
