LLY closes higher for the 4th day in a row
Eli Lilly and Company (LLY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LLY ended Wednesday at 150.96 gaining $0.88 (0.59%), significantly outperforming the S&P 500 (-0.46%). Trading $0.96 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, LLY actually gained 0.72% on the following trading day. 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 Sep 16, 2020):
Wednesday's trading range has been $1.89 (1.25%), that's below the last trading month's daily average range of $2.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LLY.
Prices are trading close to the key technical resistance level at 151.00 (R1).
Though Eli Lilly is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 154.12 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Eli Lilly. Out of 481 times, LLY closed higher 55.30% 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 60.71% with an average market move of 0.95%.