LLY pushes through Monday's high
Eli Lilly and Company (LLY) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LLY finished Tuesday at 154.85 gaining $2.01 (1.32%), outperforming the S&P 500 (0.36%). Closing above Monday's high at 153.85, the stock confirmed its breakout through the previous session high after trading up to $2.14 above it intraday.
Daily Candlestick Chart (LLY as at Aug 04, 2020):
Tuesday's trading range has been $3.19 (2.09%), that's slightly below the last trading month's daily average range of $3.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LLY.
In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 8th, LLY actually lost -1.58% on the following trading day.
Prices are trading close to the key technical support level at 152.40 (S1).
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Eli Lilly. Out of 334 times, LLY closed higher 53.29% 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 57.78% with an average market move of 0.54%.