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1/11/99 Eli
Lilly Co (LLY)
Points to watch: The double top
that formed on Lilly's daily chart during November/December was confirmed on Thursday with
the stock's fall below support at 83.8. LLY also broke below its 55 day moving
average (84.79) on Thursday. LLY broke the important support level of 80.77 on
Friday (80.77 is the point at which the Gann 1x2 angle and the Fibonacci 38% retracement
level meet). Lilly closed Friday at 78.88, just below the weak resistance point of
79. Technical indicators have been weakening since the first top occurred in
November. Daily RSI and MACD showed a strong negative divergence with price action
at the 12/31 second top and are in steep declines. Daily and weekly MACD, and weekly
stochastics, have given sell signals. Daily OBV turned down on 12/30 and weekly OBV
turned down the week of 12/11. Sell on a break below the next support level at
78.13, placing a stop near 84.
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Last modified: April 02, 2001
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