LLY slides to lowest close since January 3rd
Eli Lilly and Company (LLY) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LLY ended the week -5.59% lower at 111.74 after losing $0.08 (-0.07%) today, but still slightly outperforming the S&P 500 (-0.16%). Today's close at 111.74 marks the lowest recorded closing price since January 3rd. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LLY as at Jun 14, 2019):
Friday's trading range has been $1.23 (1.1%), that's below the last trading month's daily average range of $1.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LLY.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 110.61 (S1). After having been unable to move lower than 110.61 in the prior session, the share found buyers again around the same price level today at 111.01. The last time this happened on May 31st, LLY gained 0.72% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 115.78.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 110.61 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Eli Lilly. Out of 111 times, LLY closed higher 53.15% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 72.07% with an average market move of 1.80%.