Is Eli Lilly Trade Over?

Published on Tuesday, 31 August 2010 00:42 Written by Danny Miller

New York, August 31st (TradersHuddle.com) - Shares of Eli Lilly & Co. (NYSE:LLY) ended the trading session lower by $0.23 or -0.67% from its previous close. Eli Lilly's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Eli Lilly (NYSE:LLY) principal activities are to develop, manufacture and market pharmaceutical-based health care solutions. The company specializes in research and development, production and marketing of products for the treatment of diabetes worldwide, such as insulin and insulin delivery devices.. Some of the company's patents include Zyprexa, Prozac, Permax, Humulin, Evista, Humalog, Humatrope, Vancocin, Keflex, Nebcin , Lorabid, Gemzar, Tylan, and Rumensin.

Eli Lilly's current stock range is defined by calculated support defined at $33.72 and by the resistance level at $37.92, which should be used by traders planning their trades.

Traders wanting to establish a position in Eli Lilly stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Eli Lilly shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: