Big pharmaceutical companies have shown some life this year, but their results have been rather spotty. Eli Lilly (LLY) is an exception.
Eli Lilly is nearly 140 years old and one of the biggest names in the pharma space, always on the cusp of creating some of the most exciting drugs and therapies; recent progress has been made on autoimmune drugs and insulin, diabetes and liver disease treatments. All in all, the stock has been beating all the competition to the punch and its performance has reflected that.
Lately, Eli Lilly’s stock action has been extremely impressive. Note the stellar price moves on very strong turnover in the chart to the right, which is exactly what we like to see.
In addition, I can’t help but be amazed by its stellar relative strength, which is noted in the top pane. This tells us Eli Lilly has incredible demand and pricing power even with the weak tape (as it has been). The MACD is extended but the recent pullback to the 10 MA is constructive. Likewise, the recent pullback in the %R indicator was a nice “bull retest” – and it offered options traders a new opportunity to jump in and buy some options.
Eli Lilly Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through (NYSE: LLY) and my analysis as I mark up our chart of the week.
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About Eli Lilly, Inc.
Eli Lilly and Company discovers, develops, manufactures, and sells pharmaceutical products worldwide. It operates in two segments, Human Pharmaceutical Products and Animal Health products. The company offers endocrinology products to treat diabetes; osteoporosis in postmenopausal women and men; human growth hormone deficiency and pediatric growth conditions; and testosterone deficiency. It also provides neuroscience products for the treatment of major depressive disorders, diabetic peripheral neuropathic pain, anxiety disorders, fibromyalgia, and chronic musculoskeletal pain; schizophrenia; attention-deficit hyperactivity disorders; depressive, obsessive-compulsive, bulimia nervosa, and panic disorders; and positron emission tomography imaging of beta-amyloid neurotic plaques in adult brains. In addition, the company offers products for the treatment of non-small cell lung, colorectal, head and neck, pancreatic, metastatic breast, ovarian, bladder, and metastatic gastric cancers, as well as malignant pleural mesothelioma; and cardiovascular products for the treatment of erectile dysfunction and benign prostatic hyperplasia, thrombotic cardiovascular events, and cardiac ischemic complications.
