On Mad Money's "Executive Decision" segment Friday night, Jim Cramer spoke with David Ricks, chairman and CEO of Eli Lilly and Co. (LLY) . Eli Lilly is entering into a new partnership with biotech company AbCellera Biologics in an attempt to develop an antibody for Covid-19.
The treatment from AbCellera is taking antibodies from coronavirus survivors and screening those antibodies for the ones that could be active against the virus, Ricks explained. They hope to be in clinical trials by the summer.
Is Covid-19 too hard to crack? Ricks said he doesn't think so, but acknowledged that it will take time to develop multiple treatments and vaccines.
Let's check out the charts of LLY.
In this daily bar chart of LLY, below, we can see some big up and down swings in the price action, but the indicators, unfortunately, have remained pointed lower. LLY made a lower high in March than February. The 50-day moving average line is cresting and the still rising 200-day moving average line may not be safe in this current market environment.
The On-Balance-Volume (OBV) line has been weakening since early February and the Moving Average Convergence Divergence (MACD) oscillator has been weakening since the middle of January. It is now below the zero line in sell territory.
In this weekly bar chart of LLY, below, we can see the longer-term picture. Prices probably have peaked but the indicators have yet to register the turn.
LLY is still above the rising 40-week moving average line.
The weekly OBV line does not yet show a decline and the MACD oscillator has yet to cross to the downside.
In this Point and Figure chart of LLY, below, we used daily price data. The chart now shows a possible downside price target in the $99 area.
Bottom line strategy: The new partnership with AbCellera sounds very exciting and could be a game changer but right now the picture and the charts are being run by the sellers.