With the markets pulling back and experiencing increased volatility since the beginning of the year, we have seen that some defensive names, like Healthcare, are trending up the rankings in the various SIA Index reports. Today, we are going to look at Eli Lilly & Co (LLY) which we last commented on March 8, 2022, when it just entered the Favored Zone in the SIA S&P 100 Index Report just a few days prior on March 4, 2022, at a price of $258.64. Now the shares are at $327.27 representing a $26.6% increase. The shares currently occupy the #1 spot in the S&P 100 Index, up 1 spot in the last week and 5 spots in the last quarter.
In looking at the attached Candlestick chart of Eli Lilly & Co, we see that the shares trended strongly upwards in late February up until Mid April. The shares subsequently consolidated sideways briefly between the $275.00 to $325.00 area. Most recently, we see the shares have now broken out to the upside above its previous high at $325.00. Based on yesterday’s close, the shares are now at $327.27.
If we see follow through to this potential upside breakout, resistance can be found at around $375.00 based on a measured move. Support can be found at $312.00 and then, below that, the bottom of the sideways channel at approximately the $275.00 to $280.00 range.
In the attached Point and Figure Chart at a 1% Scale, we see the share’s strong rally starting in March of this year. Now we see the shares break to the upside and made a new high when the shares traded above $325.12.
If the trend continues, the next area of resistance is at $338.32 and, above that, the $366.35 level. Support for the shares is at the 3 box reversal at $312.43 and, below that, $285.67.
With an SMAX of 9, the shares are still exhibiting near term strength against all the asset classes.
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