Eli Lilly and Co forms bearish "Double Top" chart pattern
Oct 21, 2015
Recognia has detected a "Double Top" chart pattern formed on Eli Lilly and Co (LLY:NYSE).
This bearish signal indicates that the stock price may fall from the close of $77.01 to the range of $61.00 - $64.00. The pattern formed over 98 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached a top, after failing to break through a resistance level and ultimately breaking downward in a sign of reversal to a new downtrend. The Double Top pattern forms during an uptrend as the price reaches two distinct peaks at roughly the same price level. Volume reflects a weakening of the upward momentum, tending to diminish as the pattern forms, with some pickup at each high, less on the second high. Finally the price breaks down below the lowest low to confirm the bearish signal.
This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.