LLY: Strong Buy in My Radar List - Feb. 26
Technical Analysis (TA) & Price Action
Eli Lilly (LLY) is showing strong bullish momentum, currently trading within an ascending channel on the 1-hour timeframe. The stock recently tested the upper trendline and is consolidating near $900, a key psychological level.
Key observations:
* Trend Structure: LLY is in a strong uptrend, forming higher highs and higher lows within a well-defined price channel.
* Support & Resistance:
* Major Resistance: $912 (recent high)
* Key Support: $894, followed by $881
* Stronger Support Zones: $869 - $865 (confluence with PUT walls)
* MACD Indicator: Bullish momentum persists but shows slight signs of cooling off. Watch for potential continuation.
* Stoch RSI: Approaching overbought conditions, which may signal a slight pullback before another push higher.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator suggests a high call concentration around $900, aligning with our price action resistance. This means market makers may hedge aggressively if LLY sustains above this level, fueling further upside.
* IVR (Implied Volatility Rank): 19, with IVx avg at 32.7%, indicating relatively lower volatility.
* Call Side Bias: 23.4% of total options flow supports a bullish breakout scenario.
* Key GEX Levels:
* Strongest Resistance / CALL Wall: $900 → Break and hold here unlocks $920 (2nd CALL Wall).
* PUT Support Zone: $865 - $867.5 → A breakdown could trigger downside hedging, making this a critical level to hold.
Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $900 with confirmation (sustained hold above resistance).
* Target 1: $912
* Target 2: $920 (CALL Wall target)
* Stop-loss: Below $894
📌 Bearish Alternative (Hedge Play)
* Entry: Below $894 with volume breakdown.
* Target: $881 → $869
* Stop-loss: Above $900
Final Thoughts
LLY is one of the strongest setups on my radar. If it maintains above $900, it could trigger a gamma squeeze toward $920. However, failure to hold this level could result in a retest of $865-$869. Options positioning suggests a bullish bias, but watching price action closely is key.
📢 Risk Management: Always size positions according to your risk tolerance. Trade the setup, not the expectation.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
Eli Lilly (LLY) is showing strong bullish momentum, currently trading within an ascending channel on the 1-hour timeframe. The stock recently tested the upper trendline and is consolidating near $900, a key psychological level.
Key observations:
* Trend Structure: LLY is in a strong uptrend, forming higher highs and higher lows within a well-defined price channel.
* Support & Resistance:
* Major Resistance: $912 (recent high)
* Key Support: $894, followed by $881
* Stronger Support Zones: $869 - $865 (confluence with PUT walls)
* MACD Indicator: Bullish momentum persists but shows slight signs of cooling off. Watch for potential continuation.
* Stoch RSI: Approaching overbought conditions, which may signal a slight pullback before another push higher.
Options Flow & GEX Analysis
The GEX (Gamma Exposure) indicator suggests a high call concentration around $900, aligning with our price action resistance. This means market makers may hedge aggressively if LLY sustains above this level, fueling further upside.
* IVR (Implied Volatility Rank): 19, with IVx avg at 32.7%, indicating relatively lower volatility.
* Call Side Bias: 23.4% of total options flow supports a bullish breakout scenario.
* Key GEX Levels:
* Strongest Resistance / CALL Wall: $900 → Break and hold here unlocks $920 (2nd CALL Wall).
* PUT Support Zone: $865 - $867.5 → A breakdown could trigger downside hedging, making this a critical level to hold.
Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $900 with confirmation (sustained hold above resistance).
* Target 1: $912
* Target 2: $920 (CALL Wall target)
* Stop-loss: Below $894
📌 Bearish Alternative (Hedge Play)
* Entry: Below $894 with volume breakdown.
* Target: $881 → $869
* Stop-loss: Above $900
Final Thoughts
LLY is one of the strongest setups on my radar. If it maintains above $900, it could trigger a gamma squeeze toward $920. However, failure to hold this level could result in a retest of $865-$869. Options positioning suggests a bullish bias, but watching price action closely is key.
📢 Risk Management: Always size positions according to your risk tolerance. Trade the setup, not the expectation.
🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.