LLY testing overhead resistance, supported by 50 dayEli Lilly & Co continues its grind higher despite overall market conditions. Price recently tested overhead resistance and is being supported by its 50 day MA.
LLYC trade ideas
7/17/22 LLYEli Lilly and Company ( NYSE:LLY )
Sector: Health Technology (Pharmaceuticals: Major)
Market Capitalization: $315.073B
Current Price: $331.60
Breakout price: $334.70
Buy Zone (Top/Bottom Range): $314.00-$292.90
Price Target: $364.20-$367.50 (2nd)
Estimated Duration to Target: 112-120d (2nd)
Contract of Interest: $LLY 10/21/22 350c
Trade price as of publish date: $13.50/contract
LLY - be careful - $428 is topsLLY is running in to the top of the very long trendline starting in 2013.
Watch for resistance near $395 and $428. $428 will have significant reaction to the downside.
Current price at $370 has probable cause to take a pause maybe toward $334 before resuming the upward trend toward $428 Fib level of 55
LLY Medium Term TrendMany signs point to LLY going up in the next 3-6 months, I personally am a strong believer that it will go up however as seen b historical data it just go with long bull and long bear/flat trends, my target is $380 atm, but for the upcoming recession and down turn I would expect $200-$250 flatline for a few months to possibly a year.
LLY | LongThis week a Twitter user bought a blue tick by spending $8 to post a fake tweet "insulin will be free now". Major Insulin producer LLY erased $30 billion in market cap. in a single day. Fundamentally this stock has a huge P/E ratio, in spide, there still has growth potential for that underlying. IMO LLY will retest new highs.
BUY every dips for LLYEarning reports:
Eli Lilly (NYSE:LLY) Q3 results beat analysts' estimates but the company lowered its FY22 outlook. Q3 non-GAAP EPS rose +12% Y/Y to $1.98, while revenue increased +2.5% Y/Y to $6.94B. The company said the revenue growth was driven by a 14% increase in volume, partially offset by a 7% decline due to lower realized prices and a 4% decrease from unfavorable impact of foreign exchange rates. Sales of diabetes therapies Trulicity rose +16% Y/Y to $1.85B, and Jardiance +47% to $573.3M. New drug Mounjaro for type 2 diabetes saw sales of $187.3M. Revenue from COVID-19 antibodies grew +78% Y/Y to $386.6M. Meanwhile, Olumiant sales fell -55% to $182.9M. Breast cancer drug Verzenio sales increased +84% Y/Y to $617.7M. Cancer therapy Retevmo revenue grew 21% to $40.5M. Gastric cancer drug Tyvyt sales fell -39% Y/Y to $76.8M. Meanwhile, Migraine drug Emgality revenue grew +20% Y/Y to $168.5M.
However, sales of chemotherapy Alimta declined -74% Y/Y to $119.4M. Revenue from Forteo, which is used to treat postmenopausal women who have osteoporosis, declined -12% Y/Y to $177.1M. Lilly added that revenue in the U.S. increased 11% to $4.42B, but revenue outside the U.S. fell 9% to $2.52B. Gross margin as a percent of revenue was 77.3%, a decrease of 1.6 percentage points compared with Q3 2021. Q3 research and development expenses increased 6% Y/Y to $1.80B.
Outlook:
Lilly said it now expects 2022 revenue to be between $28.5B and $29.0B (prior outlook provided during Q2 results was $28.8B to $29.3B) consensus $28.76B. The company said the new revenue outlook includes an additional $300M unfavorability from foreign exchange rates since its previous guidance, for a total impact of ~$1B for the full year. Lilly now anticipates non-GAAP EPS to be between $7.70 and $7.85 (prior outlook $7.90 to $8.05) consensus $7.95. GAAP EPS is expected between $6.50 to $6.65 (prior range $6.50 to $6.65). The company said the reductions in the reported and non-GAAP EPS ranges reflect the unfavorable impact of foreign exchange rates and $0.06 EPS impact linked with acquired IPR&D and development milestone charges in Q3 2022.
Fundamental:
Eli Lilly and Company (NYSE:LLY) is one of the leaders in the treatment of diabetes and obesity and is committed to expanding its presence in the treatment of cancer and autoimmune diseases. In the past, the company showed significant growth in revenue, EBITDA, and margins, which attracted institutional investors and contributed to the increase in the company's capitalization. Mr. Market is capitalizing on FDA approval and Medicare's positive decision on donanemab, which is being investigated in phase 3 clinical trial. However, the controversial efficacy results and the negative safety profile shown in phase 2 call into question the objectivity of assessing the prospects of this medicine. Financial indicators that are significantly higher than the average values of the pharmaceutical industry, declining revenue, a relatively small number of product candidates in Phase 2/3 clinical trials, will be one of the reasons for the start of a corrective movement in the company's shares. And you can also find a lot of articles on market says they are waiting for "The Correction". Possibly I will say no, buy every dip!
Technical:
The trendline support and resistance is from weekly basis, and since 8&21 MAs already catching up on daily basis, therefore, there's no reason that we say it is the top of the LLY, because I could not see the uptrend is end right here. Keep making new highs are always scary, however, if LLY can keep deliver the good financial result, why it can not making another new high? Can we see any down pressures? Therefore, from trend trading side of view, buy every dips if trend still there.
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Eli lilly Pre earnings If parabolic was a stock.
This is exactly how Adobe and Google looked in late 2021 before they lost half of their value.
White lines - Primary trend
Yellow lines - Super uptrend.
2023 will be rough for this one, as all stock return to their primary trendline.. But for now I'll settle for a pullback to yellow support line around 320
LLYthe health services and health technology sectors were the first to receive investment and bullish speculative pressures as the dollar fell
that is, drugs and vaccines never go into crisis .. even LLY has never even dropped below the 200 daily moving average this year, like very few stocks
and has now confirmed a bullish symmetrical triangle, I buy now and on GAP 343 retracement
Descending TriangleThis one broke to the upside and also broke the resistance of the rectangle.
There must have been a good news event but I am not sure.
I guess we just never know!
No recommendation.
This breakout is almost exactly the height of the wide end of the triangle so far. It could go higher but measuring the wide end and projecting it from the point of the breakout is a one way to guesstimate a target
$LLY Setting up Nicely for a Call$LLY Bouncing off 302 (.681) Fibonacci. Trendsi indicators are almost connecting for a call opportunity. Green EMA (Middle line), Money Momentum flowing right on top of the EMA. As well the RSI right at 40. Waiting for the Buy Signal to confirm movement to the upside. Even with Powell speech, LLY was not really affected by it. Still trading within its zone when the Fibonacci was place back in 16 June 2022.
$LLY looks ready to breakout$LLY daily chart. IT closed nicely on Friday even though most of the stocks were down a lot. After an up move, it is now moving sideways inside this rectangular range. Looks ready for next upmove once we break this range on the upside. Once we break above 335, looking for a 8% up move in this one.
