Approaching Support- Eli Lilly

Published on Tuesday, 02 March 2010 19:52 Written by Christian Paolinetti

New York, March 2nd (TradersHuddle.com) - Shares of Eli Lilly & Co. (NYSE:LLY) are trading very close to calculated support at $33.63 with current price action closing at just $34.55 places the stock price near levels where traders will start paying attention.

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 current calculated support defined at $33.63 and by the resistance level at $37.92, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Eli Lilly's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $37.92 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.