Price Action Overview
LLY continues to show strength with a clear upward trajectory. The stock is trending within a rising channel on the hourly timeframe, supported by increased volume. It recently tested the upper boundary of the channel around $825 and showed resilience, suggesting strong bullish sentiment. MACD and Stochastic RSI indicate overbought conditions, signaling caution for new buyers at current levels.
Support and Resistance Levels
* Immediate Resistance: $830 (recent high and near the 2nd CALL Wall on GEX)
* Key Support Levels:
* $814 (channel mid-line and prior consolidation area)
* $800 (psychological level)
* $774 (HVL support level from GEX)
Options GEX Analysis
https://www.tradingview.com/x/LEKNASVZ/
* Highest Positive NETGEX/Call Wall: $830
* 2nd CALL Wall: $825 (current area of interest)
* PUT Walls:
* $720 (significant put support)
* $700 (third support level with strong gamma influence)
Trading Plan
1. Bullish Scenario:
* Entry: Near $814 (pullback to mid-channel support) or $825 (breakout above resistance).
* Target: $830 and then $840 (measured move based on channel projection).
* Stop-Loss: Below $810 to mitigate downside risk.
2. Bearish Scenario:
* Entry: If the price fails to hold $814 and breaks below $810.
* Target: $800 and $774.
* Stop-Loss: Above $818 to control losses in a false breakdown.
Options Trading Suggestions
* Bullish Setup:
* Buy Call: Strike $820, Expiry 2-3 weeks out.
* Spread: Bull Call Spread $820/$830 to reduce risk.
* Bearish Setup:
* Buy Put: Strike $810, Expiry 2-3 weeks out.
* Spread: Bear Put Spread $810/$800.
Thoughts on Direction
The strong trend and bullish momentum suggest further upside if LLY maintains its current channel. A breakout above $830 could accelerate the move to $840 or higher. However, watch for overbought signals in the short term and consider profit-taking if resistance holds.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Price levels and market conditions may change in premarket or during trading hours. Adjust trading strategies accordingly, and for specific questions, feel free to reach out. Always conduct your own due diligence and manage risks responsibly.,# Price Action Overview for LLY
## Key Points Breakdown
– **Current Trend:**
– LLY shows a strong upward trajectory within a rising channel on the hourly chart.
– Increased trading volume supports the bullish sentiment.
– Recent testing of the $825 level suggests robust market interest.
– **Indicators:**
– Both MACD and Stochastic RSI indicate overbought conditions.
– Caution is advised for new buyers at current levels due to potential price corrections.
– **Support and Resistance Levels:**
– **Immediate Resistance:** $830 (recent high and near the 2nd CALL Wall).
– **Key Support Levels:**
– $814 (mid-line of the channel).
– $800 (psychological support level).
– $774 (HVL support from GEX).
– **Options GEX Analysis:**
– Highest Positive NETGEX/Call Wall at $830.
– Significant PUT Walls at $720 and $700 providing downside protection.
## Trading Plan
### Bullish Scenario
– **Entry Points:** Near $814 (pullback) or breakout above $825.
– **Targets:** $830 initially, then $840 based on projected channel moves.
– **Stop-Loss:** Below $810.
### Bearish Scenario
– **Entry Point:** If LLY breaks below $814 and $810.
– **Targets:** $800 and $774.
– **Stop-Loss:** Above $818 to limit losses in case of false breakdown.
## Options Trading Suggestions
– **Bullish Setup:**
– Buy Call at $820 with an expiry 2-3 weeks.
– Implement a Bull Call Spread between $820 and $830.
– **Bearish Setup:**
– Buy Put at $810 with an expiry 2-3 weeks.
– Implement a Bear Put Spread between $810 and $800.
# Thoughts on Direction
The sustained bullish momentum in LLY presents an opportunity for upside movement as long as the price remains within the established channel. A decisive breakout above $830 could trigger an accelerated rally towards $840 or even higher levels. However, the current overbought conditions warrant caution, and traders should consider profit-taking or protective measures if resistance levels hold firm.
Disclaimer. The opinions expressed by our writers are their own and do not represent the views of JustInvestNews . The financial and market information provided on JustInvestNews is intended for informational purposes only. JustInvestNews is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Original article: https://www.tradingview.com/chart/LLY/gcFgQbiX-LLY-Technical-Analysis-Options-Trading-Insights-Hot-on-Radar/
