Eli Lilly Approaching Important Moving Averages

Published on Monday, 22 February 2010 07:11 Written by TradersHuddle Staff

New York, Feb 22^nd (TradersHuddle.com) - Shares of Eli Lilly & Co. (NYSE:LLY) closed the trading session at $34.24 near its 50 day and 200 day moving averages currently set at $35.5024 and $34.5337 respectively. Eli Lilly's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $33.63 and calculated resistance at $37.92. These levels should be watched by traders, as they provide insight into the latest price dynamics in Eli Lilly shares.

Traders should evaluate their options if they want to establish a position on Eli Lilly given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.