LLY closes within prior day's range after lackluster session
Eli Lilly and Company (LLY) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
LLY finished Thursday at 163.87 gaining $0.57 (0.35%), slightly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LLY as at Jul 02, 2020):
Thursday's trading range has been $2.38 (1.45%), that's below the last trading month's daily average range of $4.33. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LLY. Prices continued to consolidate within a tight trading range between 160.18 and 165.47 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on June 15th, LLY actually gained 15.68% on the following trading day.
Prices are trading close to the key technical resistance level at 164.90 (R1). The stock found buyers again today around 162.39 for the third trading day in a row after having found demand at 162.52 in the prior session and at 162.30 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 165.47 where further buy stops might get triggered. 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 four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Eli Lilly. Out of 230 times, LLY closed higher 52.61% 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 60.87% with an average market move of 1.08%.