Eli Lilly Stock Analysis: Key Levels to Watch Ahead of Earnings

Eli Lilly & Co. is set to report its earnings tomorrow, following a strong performance from rival Novo Nordisk (NVO), which beat profit expectations and reported significant year-over-year growth in its weight-loss drug Wegovy. Investors and traders are now turning their attention to Eli Lilly’s earnings report, speculating whether the company can deliver similar strong results and drive further stock momentum.

Eli Lilly Stock Price Action & Key Support Levels

Currently, Eli Lilly shares are trading around $834.83, having pulled back 13% from their peak. The weekly chart shows that the stock has established a critical support zone between $725 and $740, which could act as a stabilizing base ahead of earnings.

However, if LLY breaks below this key support level, it could trigger a broader sell-off, potentially pushing the stock toward the $520-$600 range. This lower range, marked as a buy zone for long-term investors, may offer attractive entry opportunities should further weakness unfold.

Eli Lilly Resistance Levels & Upside Potential

On the upside, a sustained break and close above $946 resistance is required to fuel bullish sentiment and push the stock higher in the near term. If Eli Lilly maintains upward momentum post-earnings, the stock could move closer to its all-time highs, reinforcing long-term bullish prospects.

Technical Indicators: Bullish or Bearish?

• MACD Indicator: The MACD (Moving Average Convergence Divergence) is showing signs of a potential bullish reversal after remaining bearish since July 2023. The earnings outcome will likely determine whether this bullish shift materializes in the coming weeks.
• Stochastic Oscillator: The stochastic indicator has been climbing, indicating positive momentum. However, it has now entered overbought territory, historically a sign that upward pressure could weaken, leading to a potential pullback.

Will Eli Lilly Stock Surge or Sell Off Post-Earnings?

With weight-loss drugs playing a major role in pharma sector growth, Eli Lilly's earnings call will be critical for investors gauging its future stock trajectory. If the company delivers strong revenue growth and beats estimates, LLY stock could challenge its $946 resistance and potentially return to all-time highs. Conversely, a weak report could trigger a retest of key support levels, offering buy-the-dip opportunities for long-term investors.

We’ll be watching closely as Eli Lilly’s earnings report unfolds, providing further insight into the stock’s medium-term outlook.