The U.S. needs submarines — and General Dynamics (GD) happens to be very good at making them; ...
Big Drug Stock Set Up at Key Level
01/26/2012 9:00 am EST
An early-year decline has taken shares of drug maker Eli Lilly & Co. (LLY) to strong moving average support, potentially in advance of a new run to higher prices. If support holds, here’s how to play it.
It’s been a tough start in 2012 for Eli Lilly & Co (LLY). The drug maker enjoyed a nice holiday season in December after slowly rising through the summer and testing its 200-day moving average (MA) multiple times.
LLY now sits carefully at its 50-day moving average, which appears to be holding as support. The MACD appears that it may just ever-so-slightly be starting to flatten, and the CCI indicator has been bouncing off the lower line, confused, it seems, about which direction to go confidently.
Learn more: Demystifying the MACD Indicator
Should the 50-day moving average hold as support, I would look for LLY to make a move toward the previous high in the area of $42. A stop just below the 50-day moving average ($38.90 for conservative traders and $38 for more aggressive traders) would be warranted.
By Tim Bourquin, co-founder, The Traders Expo
Tim will be moderating several panel discussions at February’s New York Traders Expo.
Related Articles on STOCKS
Most investors don’t know it, but wholesaling used cars is a red-hot business. This is why Cop...
That doesn’t mean Best Buy (BBY), Target (TGT), Macy’s (M), Home Depot (HD) or others ar...
For those new to trading, new to me, or my methodology, I think the following ground rules will help...