LLY: The Weight-Loss Leader – High Tight Monthly Flag

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LLY: The Weight-Loss Leader – High Tight Monthly FlagEli Lilly and CompanyBATS:LLYvssebuyungoLLY: Big Base Breakout & Continuation The Setup: While the rest of the market panics, Eli Lilly (LLY) is ignoring the noise. The unprecedented demand for its weight-loss drugs, Zepbound and Mounjaro, continues to drive massive revenue growth, insulating the stock from tech-sector volatility. Technically, we are seeing a massive Big Base Breakout on the monthly chart. Price is now digesting that move by forming a High, Tight Monthly Flag. This is a very constructive flat base with only a ~10% correction, signaling that large holders are not selling. This is an excellent area to start building a position. Reasoning: Strong Industry/Sector (Pharmaceuticals / Weight-Loss) Big Base Breakout (Major structural strength) High, Tight Monthly Flag (Bullish continuation pattern) Relative Strength (Insulated from tech volatility) If Labelled a Swing trade(2-6 Week Holds) Entry: Full position on breakout (See Chart) Profit Taking: Sell 1/3 at Goal 1 Final Exit: Remainder at Goal 2 If labelled a long term trade (3-12 Month Holds) Entry: Good time to start building a position. Risk Management: Risk 0.15% to 0.2% of your account per leg. Position Sizing: Raise your stop loss on the previous leg every time you add. Exit Signal: Close below 20-day EMA or 50EMA. Note: Remember: Every long-term investment alert can also be played as a swing trade. I normally use half the risk that I show here, this is because I am okay re-entering if it fails and it gives a better R/R ratio