Eli Lilly (LLY) shares dropped more than 4% on Thursday, continuing a hasty retreat from their record high earlier this month, as investors assessed the possible impact of a promising new weight-loss injection developed by Viking Therapeutics (VKTX) on the drugmaker’s own weigh anti-obesity drug, Mounjaro. Last week, Eli Lilly shares tumbled after Swiss pharmaceutical firm Roche Holding AG said its new non-injectable weight-loss drug has shown encouraging early stage data.
Below, we take a closer look at Eli Lilly’s chart and point out important price levels to watch out for using technical analysis.
Eli Lilly shares have trended consistently higher since the 50-day moving average (MA) crossed above the 200-day MA in April last year to form a bullish golden cross signal. However, the stock’s technicals point to a potential reversal.
Firstly, as the drug maker’s stock climbed to a record high earlier this month, the relative strength …