Eli Lilly & Co. (LLY) reported 3rd quarter 2024 earnings of $1.18 per share on October 30th, 2024 before the market opened.
This missed consensus analyst estimates of $1.47 by -0.29.
Upon the market opening 10/30/24, LLY gapped down $105.08 per share from the previous day’s close ($903.58) and opened at $798.50, sold off to a low of $769.00, then reached a high of $860.50 intraday, before ultimately closing at $846.83.
Eli Lilly (LLY)- Daily Chart
We can do a quick scan with Market Rover, our proprietary trend/trading software algorithm tool, and see that LLY has been in a longer-term bullish uptrend for around 404 days.
(LLY) – Analysts’ 12 Month Consensus Price Targets*
LLY – Daily Chart
Technically, with the recent 10/30 earnings sell off:
- Price filled a previous gap up “window” area from Aug 7-8th and currently remains slightly above this level. Often, these prior upper/lower horizontal gap window levels can act as support/resistance areas moving forward.
- On the earnings gap down, price opened right near a 78.6% Fibonacci level and sellers tried pushing price further down but couldn’t. Buyers ultimately gained control over the course of the trading day.
- Price is trading slightly above a longer-term upward diagonal support line going back to early 2023.
- Price is right around a recent 61.8% Fibonacci retracement area (time frame from early-to-mid-August).
And given:
- The identified technical areas of interest noted above…
- The longer term structural uptrend in place with Market Rover confirmation…
- The longer “lower wick” of the 10/30 earnings sell-off candle – with price reaching an intraday low of $769.00, buyers coming in and pushing price higher and closing green for the day (price touched but was not able to close above the 50% Fibonacci level), and in the upper intraday candle trading range…
- Price lows before the 10/30 earnings sell off and prior to the August bullish move up ($746.51)…
We believe:
Given the technical research above, LLY is potentially setting up for an ideal structured trade (such as an out of the money bull put options credit spread) in which we have the opportunity to make a profit three ways over the next 14 days (vs. only one way in a directional trade and having to be 100% right):
- If LLY goes up
- If LLY goes sideways
- If LLY even goes slightly down
Might be worth adding to your trading plan if it fits you.
Remember, we kept a close eye on LLY for 400+ days… and we used Market Rover to do the heavy lifting.
Happy Trading!
