LLY rises to highest close ever
Eli Lilly and Company (LLY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
LLY finished the month 7.34% higher at 164.18 after gaining $1.46 (0.9%) today, underperforming the S&P 500 (1.54%). Today's close at 164.18 marks the highest recorded closing price ever. 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 30, 2020):
Tuesday's trading range has been $2.87 (1.76%), that's below the last trading month's daily average range of $4.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LLY. Prices continued to consolidate within a tight trading range between 160.18 and 165.17 where it has been caught now for the last three trading days.
Unable to break through the key technical resistance level at 164.90 (R1), the market closed below it after spiking up to 165.17 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 24th, LLY actually gained 3.71% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 167.43, upside momentum could speed up should Eli Lilly be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Eli Lilly. Out of 305 times, LLY closed higher 52.79% 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 57.70% with an average market move of 0.60%.