LLY closes lower for the 7th day in a row
Eli Lilly and Company (LLY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 7th day in a row, LLY ended the week -3.61% lower at 141.12 after losing $0.68 (-0.48%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 141.79, the stock confirmed its breakout through the previous session low after trading up to $1.22 below it intraday.
Daily Candlestick Chart (LLY as at Feb 14, 2020):
Friday's trading range has been $1.75 (1.23%), that's below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LLY.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 141.97 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to February's low at 139.68, downside momentum might accelerate should Eli Lilly mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Eli Lilly. Out of 2 times, LLY closed higher 100.00% 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 100.00% with an average market move of 4.22%.