Approaching Resistance - Eli Lilly

Published on Monday, 26 July 2010 19:48 Written by TradersHuddle Staff

New York, July 26th (TradersHuddle.com) - Shares of Eli Lilly & Co. (NYSE:LLY) are trading very close to calculated resistance at $35.60 with the current price action closing at just $35.44 placing the stock near levels that make it difficult to buy.

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 $32.82 and by the resistance level at $35.60, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Eli Lilly, as the stock is well above support, however, as the stock pulls back towards $32.82 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $35.60 then traders will get an opportunity to enter Eli Lilly stock by establishing a position as the stock moves to a higher range.