August 7 Chart of the Day - Eli Lilly
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Eli Lilly and Company (LLY) is a global pharmaceutical company headquartered in Indianapolis with offices in 18 countries. Its products are sold in approximately 125 countries.
The company reports earnings Thursday before market open so we wanted to review their chart from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $966.10 all time high (ATH) last month price is fading back in to previous price structure as investors and traders are likely taking profits and lightening their positions.
As of today, the bulls have yet to step in with any lasting conviction.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs and where price briefly shot up near $970 then reversed starting a downward cycle.
Trading around $767 earlier today price has been attempting to find a bottom but has yet to prove it so far by not producing a series of higher highs and higher lows.
The market is implying about a $54.80 move in either direction as marked on the weekly chart by this Friday August 9. Share price has risen during the week of earnings 4 of the last 8 quarters.
Could earnings be the catalyst that definitively sets the bottom to raise price firmly back to the upside or will it continue falling?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
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