Wednesday 18 January 2017

Technical Analysis: Eli Lilly & Co.


Given the extensive downward pressure that's hampered this stock, the long term lateral support of $68 came to the rescue of buyers during November and has since generated a decent bounce with much determination to negate sellers efforts to take control.

Although price is relatively close to the downtrend, the closeness between periods where price meet resistance has narrowed enough to suggest buyers might be setting themselves up to break free from the downward trap. 

Circled on the chart are two points, both at $80 as well as exhibiting long ranged positive candles that gave impetus to the follow up rally that ensued after their respective closes. 

Co-influentially, $80 marks a point where both trending and horizontal resistance are needed to be broken in order to defy the current sentiment.

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