SKY Eye

Novo Nordisk recently broke out from a cup-with-handle base with a 137.22 buy point. While shares remain inside a buy zone, they're nearing the top at 144.08. Novo Nordisk stock initially broke out on June 4 in heavier-than-average volume.

On May 2, the Danish drugmaker reported that sales of weight loss blockbuster Wegovy nearly doubled year over year. But since it missed analyst expectations, shares briefly traded lower. However, in the months following, the stock has gained more than 17% from its May 3 lows.

Shares are now trading tightly above their 10-day and 21-day moving averages. Since August 2023, shares have largely stayed above the 50-day moving average, except for a brief stint while the stock was forming the most recent cup-with-handle base.

Another positive is Novo Nordisk's relative strength line. The RS line is holding near recent highs after showing serious relative strength amid April's broad market pullback.

Nvidia Stock Extended After Eight Straight Up Weeks

Nvidia stock has been on a roll since becoming a leader in the artificial intelligence space. Shares of the AI chipmaker have soared more than 173% since the beginning of the year.

But investors shouldn't try to chase it here, as it's currently highly extended. Not only has the stock moved more than 25% from its most recent buy points at 922.20 and 974, but shares are also nearly 33% above the 50-day moving average.

IBD investors consider a stock that's more than 10% above this level of support to be extended and at higher risk of a pullback. It's also now been one week since the firm's 10-for-1 stock split became effective.

Shares are part of the fabless semiconductor industry group, that 

ranks No. 4 out of IBD's 197 groups, showing serious leadership. Nvidia stock also boasts strong IBD Ratings: a Composite Rating of 99 and a Relative Strength Rating of 99.

Growth Stocks To Watch:

Wingstop

On Friday, Wingstop looked for support at the key round-number level of 400. The stock initially moved above this level on Wednesday. The 400 level also coincides with a three-weeks-tight buy point from a few weeks ago at 400.99. Investors could use a move with conviction above this level as a possible entry.

Bullishly, the stock is only 5.6% extended above its 10-week line, meaning there's a lower chance of a pullback at this level compared to a stock like Nvidia.

Since its cup-based breakout last November, the stock has been on a near-linear rise, touching off support at its 50-day line.

The parent of more than 2,100 chicken wing restaurants is due to report second-quarter earnings on July 25. Analysts call for earnings of 78 cents a share, a gain of 36%, with a 31% sales gain to $140.1 million.