LLY - watch the behavior above $800
Round numbers have psychological importance to market participants. They often initially act as a barrier. Once cleared they can become support or... a distant location in the rearview mirror. For reference, notice LLY's consolidation below 600 and how it took off after clearing it.
A full candle close above 800 implies continuation. The next area of interest for me is the $830 0.786 of the fib extension from the February to March move. Getting above that will make things interesting. Note that the fib time zones have been moderately predictive, but that trend has respected fib fan pretty tightly. Simply remaining within the current channel is a strong opportunity.
This is my largest position and a long-term hold. Invalidation of the current uptrend. It would take a move below ~752 to have me looking at a secondary downtrend, and a move below 720 to have me taking funds off of the table. If playing the break above this level on a shorter time frame, I'd keep a stop as tight as ~783.
A full candle close above 800 implies continuation. The next area of interest for me is the $830 0.786 of the fib extension from the February to March move. Getting above that will make things interesting. Note that the fib time zones have been moderately predictive, but that trend has respected fib fan pretty tightly. Simply remaining within the current channel is a strong opportunity.
This is my largest position and a long-term hold. Invalidation of the current uptrend. It would take a move below ~752 to have me looking at a secondary downtrend, and a move below 720 to have me taking funds off of the table. If playing the break above this level on a shorter time frame, I'd keep a stop as tight as ~783.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.