Eli Lilly & Co. - (LLY) - April 9, 2024 (Daily Stock Report)

by SIACharts.com

SIA Chartsā€™ relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company growth.

Today, we are going to look at Eli Lilly & Co (LLY) which we last commented on August 16, 2023, when the price of the shares were at $546.62. Now the shares are at $777.29 representing a 42% increase since our last commentary on the stock. Furthermore, when the shares first entered the Favored Zone of the SIA S&P 100 Index back in early April of last year at a price of $354.62, the shares have gained over 112% in a yearā€™s time versus the S&P 100ā€™s gain of approximately 31% over the past trailing 1 year time frame. The shares currently occupy the #4 spot in the SIA S&P 100 Index, up 16 spots in the last quarter.

In looking at the attached Candlestick chart of Eli Lilly & Co, we see that the shares trended strongly upwards over the last 4 years. However, in the past year, the shares picked up steam and have accelerated its uptrend indicating a much stronger accumulation phase. Most recently, it has pulled back slightly from its recent high near $800 to the $750.00 area. However, over the last few weeks, the shares have regained some of its footing inching its way back to the $800 area which will prove to be the next area of upcoming resistance. It will be interesting to see going forward, if the shares can break above this area of resistance and resume its upward trend to fresh all-time highs. The shares currently are exhibiting a positive bullish engulfing pattern.

In the attached Point and Figure Chart at a 2% Scale, we see the shareā€™s strong rally starting in 2018 with a consistent pattern of a rising column of Xā€™s, followed by brief pauses in sideways trading action and then another strong rally of rising columns of Xā€™s. Most recently, the shares really accelerated starting in February of this year, then a brief pullback materialized in April where the shares found support at its 3 Box reversal level. A new rising column of Xā€™s has asserted itself and the shares are at an important inflection point where it is testing its recent high at $795.15. If the shares manage to break above this level, the next area of resistance can be found at $913.38 and then, $1008.45 based on measured moves or which is approximately coinciding with the $1000 psychological round number. Support can be found at its 3 Box reversal level of $720.20 and, below that, the 50% retracement level of $692.23. With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, LLY is exhibiting short-term strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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