June 2 Chart of the Day - Eli Lilly
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Eli Lilly (LLY), makers of the blockbuster weight-loss drug Mounjaro, caught a boost from CNBC’s Jim Cramer recently when he went publicly bullish. Since then? Shares have dropped nearly 12%.
Was it classic Cramer timing—or a longer-term accumulation call that just needs time to play out?
We’ll let the chart speak. A deeper price action analysis may reveal whether this pullback is a setup… or a warning.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.
Since May 2023, we've showcased over 500+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
On the monthly chart we can see that after setting its $972.53 all time high last year price fell dramatically and has continued drifting downwards.
One might say that price is essentially in search of a higher low to keep it's uptrend moving in the right direction for investors.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
On the weekly chart, we can see with much more clarity the selling pressure during the past several weeks with price making a series of lower highs and lower lows.
One could say that a "bull flag" pattern has been forming and could continue to fill out.
A bull flag pattern is a bullish continuation pattern that forms after a strong upward price movement (the “flagpole”), followed by a brief period of consolidation that slopes slightly downward or sideways (the “flag”). It reflects a pause in momentum before the next potential leg higher.
Perhaps Cramer was right after all but simply early with his remarks.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
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.
Because You Were Interested in today's FREE Chart of the Day...
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