BREAKING NEWS: LLY Consolidates Below Resistance, Announces Positive Results for Once-Weekly Insulin Shots
Lilly (LLY) continues to consolidate below its resistance level at $955, sending bullish signals to traders who are betting on an upside break soon. The stock has been making lower highs and higher lows, forming a triangle pattern that suggests a potential breakout is imminent.
Positive Results for Once-Weekly Insulin Shots
Today, LLY announced positive results from its once-weekly insulin shots, which could potentially disrupt the insulin market and boost the company’s growth. The study showed that the new treatment was more effective and safer than traditional insulin products.
Traders Still Holding onto Calls
Despite the consolidation, traders who purchased 1000C calls are still holding onto their positions, betting on an upside break soon. This bullish positioning suggests that the market expects LLY to break above its resistance level and continue its upward trend.
3-Month Skew Points to LLY’s Bullishness
The 3-month skew for LLY has turned bullish, indicating a high demand for options that are priced above the current market value. This trend is consistent with the expectation of an upside break, as traders are willing to pay a premium for calls that are expected to appreciate in value.
Will LLY Break Above Resistance?
The technical charts suggest that LLY has the potential to break above its resistance level at $955. The stock’s recent price action has formed a descending triangle, which is often a bullish pattern that precedes a breakout. If LLY can break above its resistance level, it could trigger a significant rally, as it would signal a successful breakout above the consolidation range.
Investors Should Watch for Confirmation
While the technical charts are suggesting a potential upside break, investors should wait for confirmation before entering long positions. A break above the resistance level at $955 would provide the confirmation needed to buy the dip. Until then, investors should continue to monitor the stock’s price action and wait for the right entry point.
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INSULIN SHOT NEWS:
Eli Lilly announced positive results for its QWINT-1 and QWINT-3 trials of once-weekly insulin efsitora alfa for type 2 diabetes.
Both trials met their primary endpoints, showing non-inferior A1C reductions compared to daily insulins. Efsitora also demonstrated a similar safety profile and fewer hypoglycemic events.
Efsitora reduced severe hypoglycemic events by 40% in one trial and also increased time in glucose range. These findings could potentially transform insulin therapy for type 2 diabetes patients.
Detailed results will be presented at the EASD Annual Meeting 2024.
TECHNCIALS:
POSITIONING:
3 month skew for LLY still bullish.
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