LLY rises to highest close since April 26th
Eli Lilly and Company (LLY) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LLY finished Thursday at 119.77 gaining $1.10 (0.93%), outperforming the S&P 500 (0.15%). Today's close at 119.77 marks the highest recorded closing price since April 26th. Trading up to $0.86 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 118.84, Eli Lilly confirmed its breakout through the previous session high after trading up to $1.08 above it intraday.
Daily Candlestick Chart (LLY as at Dec 05, 2019):
Thursday's trading range has been $2.38 (2.01%), that's far above the last trading month's daily average range of $1.77. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LLY.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on October 30th, LLY gained 1.09% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 117.54 earlier during the day, the market bounced off the key technical support level at 118.25 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 117.57 in the prior session, the stock found buyers again around the same price level today at 117.54.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Eli Lilly. Out of 402 times, LLY closed higher 57.96% 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 57.96% with an average market move of 0.70%.