Today, pharmaceutical giant, Eli Lilly & Company (LLY), is coming under heavy selling pressure after reporting earnings. The stock is declining lower by 6.38% to $151.43 a share. The company claimed that Q2 business results were negatively impacted by COVID-19. Traders and investors must note that LLY stock is now trading below its 50 and 100-day moving averages. This position puts the stock in a weak technical position on the charts. It usually indicates that lower prices are ahead for the shares.
The next major support level for LLY stock will be around the $140.00 level. This is where there is a major gap fill from June 15th, 2020. Often, gap fills on a chart will serve as very good chart support when tested. There is also the 200-day moving average around the $140.00 level which helps to increase the support on the chart when the stock tests that level. I will be watching to see if LLY stock comes down into this important support area for a long side trade.
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