Is Eli Lilly Breaking Out?

Published on Wednesday, 28 July 2010 08:04 Written by Christopher Lynn

New York, July 28th (TradersHuddle.com) - Shares of Eli Lilly & Co. (NYSE:LLY) closed the trading session at $36.10 just above calculated resistance at $35.60 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 stock was trading in a well defined range with support at $32.82 and resistance at $35.60, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Eli Lilly's stock is still near the broken resistance level, traders will be focusing on $35.60 to see if the stock holds the breakout without rolling over.