Eli Lilly (LLY) Potential - 50-day MA Period
$Eli Lilly(LLY)$ has turned up as one of the stocks with potential when we scan with technical indicators (SMA, ADX and RSI).
Eli Lilly is a pharmaceutical company specializes in diabetes care, treating obesity, fighting against Alzheimer’s disease, and tackling cancer and immune system disorders, they have helped 51 million people with their medications around the globe.
Eli Lilly’s share price hits a 52-week high of close to $630 on 13 Oct (Friday). The share price have been up 69% year-to-date.
In this article I will be assessing how Eli Lilly share price have been trading using purely technical analysis and see if we can find any potential opportunity.
Currently it is down by 2.71% as of 19 Oct 2023 trading session.
Technical Indicator - Simple Moving Average (SMA) - 50-day MA period
As we can see that Eli Lilly has been trading above the 50-day MA period for quite some time recently, even though we saw some dips in its share price.
There is still potential of this stock going more upside. The company continues to spend on research and development (R&D) to drive the growth of new products. For the first half of 2023, Eli Lilly spent US$3.7 billion or around 24% of its revenue on R&D.
Their new diabetes medication, Mounjaro, which was launched in Q2 of 2022 has been well received in US because of its strong efficacy and positive customer feedback.
Technical Indicator - Average Directional Index (ADX)
ADX is currently between 20 and 40 indicating a developing trend, having potential to move beyond 40 for a strong trend.
Its +DI is above -DI suggesting a bullish upside. I would foresee investors sentiment to come back and push the share price higher.
Technical Indicator - Relative Strength Index (RSI)
If we look at how RSI movement have been, we can see that it has been trying to stay in overbought region, where traders and investors would consider “LONG” or buying positions into Eli Lilly.
Recently it starts to retreat from overbought partly due to the market volatility and uncertainty brought by strong yield.
I would foresee that traders and investors interest should be coming back to help Eli Lilly share price to trend higher as more buying activities should be expected.
Summary
Based on what we can see from Eli Lilly drugs demand, market is still interested in this stock, the recent pullback might be just a small correction.
I would expect Eli Lilly trading to pick up on the buying and LONG side, this pushing the share price higher.
Appreciate if you could share your thoughts in the comment section whether you think Eli Lilly would be able to close higher at end of this week (20 Oct)?
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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Massive gains made on my NFLX Calls. Giving me much dry powder to buy cheaper LLY Calls tomorrow if we get another dip.😎Buying these manipulation dips on LLY continue to be very profitable for me whenever we run back up. Zero fear on pullbacks 😁
About to bounce off this MA level - and be back above $600 this week with market turn to the upside. If earnings best and approval, we could see new ATH.
not always true. many institutional stocks had their beginning. LLY is a heavily owned by institutions, part of the reason the float is so thin, and there is also ETFs. But don't stand in front of the on coming train and yell STOP.
542 to 554 is the key hold, look for a new high in Nov. New week, new trend, have a safe weekend, enjoy the moment that we have.
Eli Lilly is an absolute power house. They are on a big spike right now but it’s almost never a bad to time to get into LLY.
Well, I sold a few shares of lly today. So what, it is the 1st time in four years. Cannot believe the run that lly has had.
Wait until they finally get approval from the FDA to market their weight loss drug!!!! It will bounce right back up.
SNY is down 19.7% today! Keep in mind that LLY is priced for perfection; ANY HINT OF BAD NEWS, WATCH OUT BELOW.
YEP! After earnings report comes out it will bounce right back and then some so don't worry if you're long.
LLY best stock I have ever owned (another buying opportunity for me )
Lilly's stock graph needs a double dose of Viagra,