$LLY

The technical structure for SMR presents a compelling case of a strong, sustained uptrend, characterized by a rhythmic pattern of sharp advances followed by periods of consolidation. This behavior is the hallmark of a healthy, momentum-driven bull move.

1. Pattern Analysis: Sequential Bull Flags

The chart reveals the successful completion and continuation of a classic bullish pattern sequence:

The First Bull Flag: This pattern likely began with a powerful upward move (the "flagpole"), followed by a brief, shallow, and downward-sloping consolidation period (the "flag"). The successful breakout above this first flag confirmed the pattern and signaled the resumption of the uptrend. Your note that this first pattern "has been a success" is a key observation that sets a bullish precedent.

The Emerging Second Bull Flag: Following the initial breakout, the price action appears to be forming a second, successive bull flag. This pattern represents a temporary pause and period of profit-taking within a larger uptrend. It indicates that after a strong leg up, the market is catching its breath, allowing overbought conditions to ease before the next potential advance. We are currently in the "waiting" phase for this second pattern to fully reveal itself and confirm with a breakout.

2. Fibonacci Retracement: Mapping the Pullback and Target

Applying Fibonacci retracement levels to the most significant prior upswing provides a mathematical framework for understanding the corrections and projecting future targets.

The current consolidation within the second bull flag has already respected key Fibonacci levels, finding support and reversing near them:

0.236 Level ($44.30): This shallow level was easily passed, indicating a healthy correction.

0.382 Level ($36.18): This is a common retracement zone in a strong trend, and the price action here likely provided a key support area.

0.500 Level ($29.62): A deeper, but still within the normal, retracement level. Holding above this level would be considered a sign of continued strength.

The analysis points to the 0.618 Fibonacci retracement level at $23.05 as the primary target for the overall pattern. This level is a deep retracement and often acts as a critical support or resistance zone. In this context, it represents a significant profit-taking objective once the second bull flag completes its breakout and resumes the upward trajectory.

3. The Overall Narrative and Key Levels to Watch

The story for SMR is one of a powerful, structured uptrend building energy for its next move.

The Bullish Narrative: The successful first bull flag established a pattern of "burst and consolidate." The formation of a second such pattern suggests the trend is well-organized and has further to run. The measured move projection from the second flag, upon a breakout, aligns with the $23.05 (0.618 Fib) target.

The Outlook After the Target: It is prudent to anticipate that upon reaching the $23.05 target, the stock will likely experience a significant pullback or period of extended consolidation. This is a typical market behavior as traders lock in profits at a major Fibonacci level.

Conclusion and Strategy:

Confirmation Trigger: A decisive breakout above the resistance trendline of the current, second bull flag pattern is needed to confirm the next leg up is beginning.

Primary Target: The initial upside target for this next leg is projected at the $23.05 level.

Risk Management: A break below the support trendline of the second flag would invalidate the short-term bullish pattern and suggest a deeper correction is underway.

In summary, SMR is exhibiting technically sound bullish behavior. The focus is now on the completion of the second bull flag, with a breakout setting the stage for a move toward the $23.05 Fibonacci target, after which a pullback is considered a high probability.

LLY has confirmed a bull flag pattern which suggest a bull run. LLY has strong fundamentals. stop loss for LLY is 0.236 (787.55). take profit is 1,100 and 1,200 reparaphase and make it longer please
Of course. Here is a detailed and repurposed technical analysis of LLY (Eli Lilly) based on the points you provided, expanded to provide a more comprehensive market perspective.

Technical & Fundamental Analysis of LLY: Positioning for a Continued Advance
A combined technical and fundamental assessment of Eli Lilly (LLY) reveals a powerfully bullish setup, suggesting the stock is poised for a significant continuation of its established uptrend. The convergence of a confirmed chart pattern and robust underlying fundamentals creates a high-conviction narrative for further gains.

1. Technical Outlook: The Confirmed Bull Flag Pattern

The primary technical feature on the chart is the confirmation of a Bull Flag pattern. This pattern is one of the most reliable continuation signals in technical analysis and typically forms after a strong, near-vertical advance (the flagpole).

Pattern Structure: The formation began with a sharp upward move (the flagpole), followed by a period of consolidation characterized by a slight downward or sideways drift on lower volume (the flag). This consolidation represents a brief pause and profit-taking phase within a larger bullish trend.

Confirmation: The pattern is considered "confirmed" once the price breaks out above the upper trendline of the flag consolidation with conviction, ideally accompanied by a surge in trading volume. This breakout signals that the period of consolidation has ended and the prior uptrend is resuming.

2. The Powerful Fundamental Backdrop

The bullish technical structure is significantly reinforced by LLY's strong fundamentals. The company is a leader in the pharmaceutical sector, with a highly promising portfolio. Key drivers include:

Blockbuster Drugs: Massive commercial success and future potential from drugs like Mounjaro and Zepbound in the GLP-1 space for diabetes and weight loss.

Robust Pipeline: A strong and innovative research and development pipeline that promises future growth.

Solid Financials: Consistent revenue growth and profitability.

This fundamental strength provides a solid foundation for the stock's upward move, suggesting that the trend is supported by tangible business performance and not merely speculative sentiment. This reduces the risk of the pattern being a false signal.

3. Trade Management Strategy: Risk and Reward

A clear plan for managing the trade is crucial. Based on the bull flag's measured move target and Fibonacci levels, a structured approach would be:

Stop-Loss (Risk Management): To protect capital in the event of a pattern failure or a sudden market reversal, a logical stop-loss level is placed below the 0.236 Fibonacci retracement level at $787.55. This level acts as a key support; a break below it would invalidate the immediate bullish premise and suggest a deeper pullback is underway.

Profit-Taking Targets (Reward Zones): The measured move projection of the bull flag pattern provides clear upside objectives.

Primary Target: $1,100. This is the initial projected price target based on the technical pattern and represents a key psychological and resistance zone.

Extended Target: $1,200. If buying momentum remains exceptionally strong and the stock breaks through the $1,100 level with ease, a further extension toward the $1,200 area becomes probable. This would likely represent a more euphoric or parabolic phase of the move.

Synthesis and Market Outlook

In summary, LLY presents a high-probability bullish setup where technicals and fundamentals are in strong alignment. The confirmed bull flag breakout indicates the continuation of a powerful uptrend, with clearly defined levels for managing risk and securing profits.

Key Levels to Watch:

Support (Stop-Loss): $787.55

Resistance (Target 1): $1,100

Resistance (Target 2): $1,200

Traders and investors should monitor the stock's behavior at these key levels. A hold above the flag's resistance, now turned support, combined with strong fundamental tailwinds, keeps the bullish thesis firmly intact.