LLY: The Next Support Levels to Watch!
On the daily chart, after a strong rally towards the resistance level at $966.10, LLY has experienced a sharp pullback. The stock failed to break through the key resistance and showed a strong rejection at that level, indicating a potential top signal. The bearish momentum is evident as the price is heading toward a possible retracement zone. The Fibonacci retracement levels show key levels to watch, with the 38.2% retracement near $880, and further possible retracements toward 50% at $849 and 61.8% at $825. The 21-day EMA is still trending upwards but is now being tested as the price begins to weaken. If lost, then the retracements will be our next targets.
On the weekly chart, a clear V-shape recovery is visible, which culminated in a significant rise back toward the $966 resistance area. However, the rejection at this level has formed a potential double top, which is often a bearish reversal signal. The price has now pulled back sharply, which aligns with the signals on the daily chart. If the price continues to decline, the $850 area around the 21-week EMA will be critical support levels to monitor, whichc coincides witth the 50% retracement level observed on the daily chart. If the price breaks below these levels, it could indicate a deeper correction is underway.
In conclusion, LLY appears to be in a corrective phase after failing to break through the key resistance at $966. For now, we should keep an eye on the key Fibonacci retracement levels and the 21-EMA for potential support during this pullback. A continued failure to hold these levels could lead to more downside pressure in the short term.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
On the weekly chart, a clear V-shape recovery is visible, which culminated in a significant rise back toward the $966 resistance area. However, the rejection at this level has formed a potential double top, which is often a bearish reversal signal. The price has now pulled back sharply, which aligns with the signals on the daily chart. If the price continues to decline, the $850 area around the 21-week EMA will be critical support levels to monitor, whichc coincides witth the 50% retracement level observed on the daily chart. If the price breaks below these levels, it could indicate a deeper correction is underway.
In conclusion, LLY appears to be in a corrective phase after failing to break through the key resistance at $966. For now, we should keep an eye on the key Fibonacci retracement levels and the 21-EMA for potential support during this pullback. A continued failure to hold these levels could lead to more downside pressure in the short term.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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