Eli Lilly and Co. (LLY) was last reviewed at the middle of February and I wrote, "In this Point and Figure chart of LLY we can see a bearish price target of $61 being projected. In January we wanted to see a close above $88 to signal a move higher and that level is still the level to beat." The price of LLY has climbed and the bearish price target on the Point and Figure chart is off the table. The possibility of a new high is being projected with the recent trade up at $79.84 (see chart 3, below).
In this daily bar chart of LLY, below, we can see a small uptrend being established with higher lows and now higher highs. Prices are still below the declining 50-day moving average line and the declining 200-day moving average line. It will take a rally above $83 to get above these averages but even more of a rally to turn the slopes positive.
The daily On-Balance-Volume (OBV) line did not decline much from January to February and now the line is improving again. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed last week to a cover shorts buy signal.
In this weekly bar chart of LLY, below, we can see that prices are below the flat 40-week moving average line and that the lows of August and May were broken. Both the weekly OBV line and the MACD oscillator show weak or bearish patterns.
In this updated Point and Figure chart of LLY, below, we can see the minor upside breakout at $79.84. An upside price target of $89.42 is being projected but there is a considerable amount of overhead chart resistance starting around $82.
Bottom line: Investors seem positive on the overall stock market and we could see the broad averages make new highs in March. This bullish atmosphere could help or allow LLY to make a comeback but chart resistance beginning around $82 needs to be overcome.