LLY breaks back above 100-day moving average
Eli Lilly and Company (LLY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LLY ended Thursday at 134.35 surging $12.41 (10.18%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 126.14, Eli Lilly confirmed its breakout through the previous session high after trading up to $9.60 above it intraday.
Daily Candlestick Chart (LLY as at Mar 26, 2020):
Thursday's trading range has been $13.80 (11.19%), that's far above the last trading month's daily average range of $8.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LLY.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 100-day moving average at 130.18 for the first time since March 19th. When this moving average was crossed above the last time on March 13th, LLY actually lost -7.17% on the following trading day. Prices are trading close to the key technical resistance level at 137.34 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 147.87, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Eli Lilly. Out of 298 times, LLY closed higher 54.70% 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 57.72% with an average market move of 0.54%.