LLY Near $980 Support, Oversold
$Eli Lilly(LLY)$
Eli Lilly Dips -1.54%: Pharma Giant Tests Support Near $980, Oversold Signal Emerges
Latest Close Data
LLY closed at $982.22 on December 10, down -1.54% (-$15.37) from previous close of $997.59. Stock trading 11.7% below 52-week high of $1111.99, with intraday range of $979.18-$1012.00.
Core Market Drivers
Capital outflows dominated with $129M net selling pressure as institutional profit-taking continued.
Volume ratio of 0.79 indicates below-average participation amid year-end portfolio rebalancing.
Short interest remains relatively low at 6.65%, suggesting limited bearish conviction.
Technical Analysis
RSI(6) at oversold 21.85 signals potential bounce, while RSI(12) at 43.22 approaches oversold territory.
MACD shows deepening bearish divergence with DIF at 26.07 and DEA at 43.14, creating -34.14 histogram.
KDJ at extremely oversold levels (K:12.05, D:26.55) suggests reversal potential.
Key Price Levels
Primary Support: $762.78 (major support zone)
Immediate Pivot: $980-985 (current consolidation area)
Strong Resistance: $1017.78 (recent technical ceiling)
Valuation Perspective
Current P/E TTM of 48.05 trades below historical average of 52.66, while P/S ratio of 15.63 reflects premium pharma valuation. Forward P/E of 41.90 suggests moderate growth expectations.
Analyst Targets
30 analysts maintain bullish stance with average target of $1053.87 (7.3% upside).
Strong distribution: 9 Strong Buy, 15 Buy, 9 Hold ratings indicating institutional confidence in long-term diabetes/obesity franchise.
Weekly Outlook
Expect consolidation in $975-$1000 range as oversold conditions attract buyers.
Break below $975 targets $940-950 zone, while recovery above $1000 opens path to $1020-1030 resistance cluster.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Please conduct your own research and consult financial advisors.
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