Eli Lilly Shares Hit Record Highs on Positive Clinical Trials Results
Eli Lilly (LLY) shares reached a record high following the announcement of positive results from clinical trials of tirzepatide, a key component in the company’s diabetes drug Mounjaro and weight loss treatment Zepbound. The trials showed a significant reduction in the risk of developing type 2 diabetes among patients.
The stock has been trading within a broadening wedge pattern since May of last year, with a recent earnings-driven gap on Aug. 8 contributing to its bullish momentum. Eli Lilly shares are currently trading around $954.01 in premarket trading, having hit an all-time high of $967 on Tuesday.
Strong Sales Performance Boosts Share Prices
Recent sales of Mounjaro and Zepbound exceeded Wall Street’s expectations, with studies also indicating their effectiveness in treating heart failure. This positive performance helped drive the company’s shares up by over 18% in the past month.
Technical Analysis Highlights Key Price Levels
Using technical analysis, we can identify important support and resistance levels in Eli Lilly’s stock chart. The $885 range, just above the 50-day moving average, is likely to provide support based on previous trading levels. A more significant support level lies at $790, where the stock may find buying interest.
On the resistance side, the $950 level is a key area to watch, as it has served as a significant barrier in the past. Beyond that, the $1,000 mark presents a major psychological resistance point, potentially coinciding with overbought conditions on the relative strength index (RSI).
Source : www.investopedia.com