Eli Lilly Finally Pulls Back

NYSE:LLY   Eli Lilly and Company
Drug developer Eli Lilly shot to new highs earlier in the year, and now it’s finally pulled back.

The first pattern on today’s chart is the high-volume bullish candle on May 3. The move followed positive Phase 3 data for donanemab, its potential Alzheimer's disease treatment.

Second, prices are trying to hold the rising 21-day exponential moving average. That may indicate its short-term uptrend remains in effect.

Third, LLY apparently got ahead of itself last week and was unable to hold a new all-time high. But its quick pullback dragged stochastics to an oversold level where some buyers may feel more comfortable with the risk/reward.

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