Stock of the day: Eli Lilly

In today’s stock of the day, let’s take a look at Eli Lilly (LLY) — one of the market’s most closely watched pharmaceutical giants — which is now flashing a strong long-term buy signal. The setup is visible on the weekly chart, meaning this isn’t just a short-term fluctuation but potentially the start of a major directional move that could shape the next few months.

The story begins with a sideways trend that has dominated the price action since the beginning of 2024. For months, Eli Lilly moved within a wide range, repeatedly testing both support and resistance without a decisive breakout. A few weeks ago, however, the stock experienced what initially looked like a bearish breakdown — a false breakout below the key yellow horizontal support. This move, marked with an orange highlight, quickly reversed as buyers stepped back in and pushed the price back above the support level. That false breakout was the first bullish clue.

Following the reversal, Eli Lilly successfully retested the yellow zone as a new support, confirming that buyers had regained control. The recent strong weekly bounce, marked by a clear upward arrow on the chart, adds further confidence to the bullish outlook. Now, the only obstacle standing in the way of a confirmed long-term uptrend is the black downtrend line — the upper boundary of the sideways consolidation.

A weekly close above that black resistance line would be a textbook breakout confirmation and a proper long-term signal to buy. Such a move would not only cancel the previous bearish sentiment but also open the door for a new bullish wave that could carry the stock toward new highs.

Source: https://www.axiory.com/analytics/technical-analysis/usd-chf-awaits-decision-triangle-squeeze-nears-its