NVS shares are down due to a failed phase 3 trial; technical analysis suggests support near the 500-day moving average.

The next stock on our list here is going to be Novartis. The ticker is NVS. It dropped 12.77% after it disclosed that the uh Pella Carson phase 3 Horizon trial did not meet its primary endpoint.

Selena asked for NVS which has some news here. Frankly, NVS not had a lot of good news recently. Novarta shares trading lower after the company announced that the uh Peloc Carson phase 3 trial did not meet its primary endpoint.

The global phase 3 harbor study evaluating Delerian and people living Sorry. >> No, sorry. I just the the candle finally showed up. So, I just was like reacting to the drop. >> Oh, gotcha.

Okay. So, let me keep going with the news here. Sorry. Didn't mean for that to distract me. Uh, in people living with um monic distrophe type one did not meet its primary endpoint.

More bad data here. 13th reaction tells the story. This drop takes us out of this entire sideways area. I mean, gosh, this goes back to March and we're basically we we did not even we did not even glance at the 200 day.

We went through the 20, 50, 100, and 200 day. We overshot it by a ton. We're we're we've broke this sideways structure that we're in. Stocks down 13% here. 13. What's the trade on this?

The global phase 3 harbor study evaluating Delerian and people living with um monic distrophe type one did not meet its primary endpoint. More bad data here.

What's the trade on this? >> Uh my initial thought is we're probably going to see uh a test of this 500 day SNA. >> U 128. That makes sense. >> Yeah. 128. Uh yeah. So, and if you look to the left, that's kind of in a little bit of a sideways area. uh that started from August 2025 and ran till about the end of 2025 before it uh rallied in in uh from December into January.

So that looks like uh the area we could get some support that that range. So some as low as I would say you know 12121 as high as 33 34 uh but somewhere in there I think you're going to u you see see some support.

Is it the final support? I don't know, but I think you'll see the price uh your buyers step in at that level. U 128. That makes sense.

Are you trying to trade for more downside? Are you waiting for a possible support bottom and and trying to add it there? What's the what's the trade thought on how how would you play NVS, I guess, is the easy way for me to ask that.

What What are you looking to do here with NVS 13?

What are you looking to do here with NVS 13? I would totally agree. I think that 130 128 500 day moving average is your next stop here. >> Yeah. And if it uh falls further than that, I think somewhere uh around 120 is going to be your next support.

Okay. And 120, that's right down here. That you can actually very easily see that from the chart. Okay. Look to the left a little more. Look to the left a little bit more. There you go.

Here's 120. Sorry. Yep. Resistance, resistance, support, support. Absolutely spot on.

Lion here saying NVS got cooked, Ryan. I think waiting for it to find a bottom is wiser. I would agree with that. I'm not looking to play this to the downside. I'm looking to play bounces or per perhaps a support as you mentioned Joe here though this is might be the bigger concern Joe here saying no's whole pipeline is gone in a weekend

and now so I don't know everything that's in NVS's pipeline but it it doesn't sound good here uh it doesn't sound good here at all that's definitely going to be one of the next steps to to look at I did because this is a big gap down I did add this to the bot list I hope I don't regret that later today But it's on there. I'll keep you posted.

Yeah, I I don't know about that being their whole pipeline. This is a very big company. It's not like one of those biotechs that's in a uh that doesn't have any revenue or anything.

Uh but I will say that that that is that is a phase three uh not meeting their primary endpoint. That is a massive hit one way or the other.

And and I think the other thing is is how big is this drug relative to the rest of what's in the pipeline? I don't know the answer to that. And Joe, if this is the the biggest one, frankly, like 13 said, phase three myths like this, no bueno any way that you slice it.