Keep an eye on oversold shares of Eli Lilly (LLY).
The stock appears to have caught support after gapping from about $908 to $806.14. It’s also overextended on RSI, MACD and Williams’ %R. From its last traded price of $806.14, we’d like to see it initially refill its bearish gap at around $908.
Helping, Morgan Stanley just reiterated that LLY is a top pick following the Obesity Week conference. “While the GLP-1 class continues to dominate much of the commercial/pipeline development, at the conference there was increasing discussion about the next wave of mechanisms, including amylin,” said the firm, as quoted by CNBC.
In addition, it looks like 2024 outlook negativity has been priced into its pullback.
“Although the revenue guidance range was changed modestly to $45.4B to $46B from $45.4B to $46.6B, non-GAAP EPS is now seen at $13.02 to $13.52, down from $16.10 to $16.60,” according to Seeking Alpha.
In short, investors may want to use weakness in LLY as an opportunity.
Sincerely,
Ian Cooper
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