LLY Technical Analysis for Feb. 7
Chart Insights (Hourly Timeframe):
1. Trend Analysis:
* The price shows an upward trend within a rising channel. Support levels align with the lower trendline around $827, while the upper boundary projects resistance near $880–$900.
* MACD: A bearish crossover with a declining histogram suggests a possible pullback or consolidation phase.
* Stochastic RSI: The oscillator is moving down from the overbought zone, signaling decreased momentum.
2. Key Support/Resistance Levels:
* Support: $827, $816, $798.
* Resistance: $870, $887, $900.
3. Volume:
* Volume spikes align with upward movements, but the recent decline indicates waning bullish enthusiasm near resistance.
Options GEX Analysis:
1. Call Walls:
* Significant resistance at $887 (78.68% Call Wall) and $900 (89.5% Call Resistance / Gamma Wall).
* Likely a tough level for bulls to break without substantial volume.
2. Put Walls:
* Support levels at $762.5 (HVL), $750 (2nd Put Wall), and $740.
3. Market Sentiment:
* GEX leaning bullish (27.6% Calls), but IV (7.7) and IVx avg (30.4) imply low implied volatility—cautioning reduced movement potential.
Trading Plan
Bullish Scenario:
* Conditions: If LLY maintains support above $860 and breaks $870 with increased volume.
* Strategy: Buy Call Option at $870 strike. Target $887–$900.
* Entry: Upon a breakout above $870.
* Stop Loss: Below $860.
* Profit Target: $887–$900.
Bearish Scenario:
* Conditions: If LLY loses $860 support and stochastic RSI continues bearish.
* Strategy: Buy Put Option at $850 strike. Target $827–$816.
* Entry: Upon breakdown below $860.
* Stop Loss: Above $870.
* Profit Target: $827–$816.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always confirm real-time GEX updates and monitor price action during the market session. Practice proper risk management.
1. Trend Analysis:
* The price shows an upward trend within a rising channel. Support levels align with the lower trendline around $827, while the upper boundary projects resistance near $880–$900.
* MACD: A bearish crossover with a declining histogram suggests a possible pullback or consolidation phase.
* Stochastic RSI: The oscillator is moving down from the overbought zone, signaling decreased momentum.
2. Key Support/Resistance Levels:
* Support: $827, $816, $798.
* Resistance: $870, $887, $900.
3. Volume:
* Volume spikes align with upward movements, but the recent decline indicates waning bullish enthusiasm near resistance.
Options GEX Analysis:
1. Call Walls:
* Significant resistance at $887 (78.68% Call Wall) and $900 (89.5% Call Resistance / Gamma Wall).
* Likely a tough level for bulls to break without substantial volume.
2. Put Walls:
* Support levels at $762.5 (HVL), $750 (2nd Put Wall), and $740.
3. Market Sentiment:
* GEX leaning bullish (27.6% Calls), but IV (7.7) and IVx avg (30.4) imply low implied volatility—cautioning reduced movement potential.
Trading Plan
Bullish Scenario:
* Conditions: If LLY maintains support above $860 and breaks $870 with increased volume.
* Strategy: Buy Call Option at $870 strike. Target $887–$900.
* Entry: Upon a breakout above $870.
* Stop Loss: Below $860.
* Profit Target: $887–$900.
Bearish Scenario:
* Conditions: If LLY loses $860 support and stochastic RSI continues bearish.
* Strategy: Buy Put Option at $850 strike. Target $827–$816.
* Entry: Upon breakdown below $860.
* Stop Loss: Above $870.
* Profit Target: $827–$816.
Disclaimer:
This analysis is for educational purposes only and not financial advice. Always confirm real-time GEX updates and monitor price action during the market session. Practice proper risk management.
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.
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.