As of 09/29/2022
  Indus: 29,226 -458.13 -1.5%  
  Trans: 12,258 -199.22 -1.6%  
  Utils: 906 -38.84 -4.1%  
  Nasdaq: 10,738 -314.13 -2.8%  
  S&P 500: 3,640 -78.57 -2.1%  
YTD
-19.6%  
-25.6%  
-7.6%  
-31.4%  
-23.6%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/29/2022
  Indus: 29,226 -458.13 -1.5%  
  Trans: 12,258 -199.22 -1.6%  
  Utils: 906 -38.84 -4.1%  
  Nasdaq: 10,738 -314.13 -2.8%  
  S&P 500: 3,640 -78.57 -2.1%  
YTD
-19.6%  
-25.6%  
-7.6%  
-31.4%  
-23.6%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

Bulkowski's Eli Lilly (LLY) Trading Quiz

Released 11/30/2021.

LLY: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 3
chart pattern

What chart patterns can you find? Look for the following (if you find others, great!): broadening top, 2 head-and-shoulders bottoms, double top, inverted and ascending scallop.

The answer is on the next slide.
2 / 3
chart pattern

The Adam & Eve double top has a wimpy Eve top but at this price, the percentage difference between peaks is small. The head-and-shoulders bottom in August is also not as symmetrical as I like to see. The pattern has broken out upward.

Question 1: Do you buy or sell short the stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 3
chart pattern

Answer 1 (buy?): Buy because the breakout is upward, a close above the neckline. For steep up-sloping necklines, use a close above the right armpit as the buy signal (which I use any time the neckline slopes upward. It's the red line).

Answer 2 (target?): Based on resistance, a good target would be 68. A price knot (circled in yellow) occurs during early July. The measure rule for the head-and-shoulders bottom is the height taken from the neckline directly above the head projected upward from the neckline pierce or right armpit high. The head bottoms at 59.78 and the neckline is about 64.50 at that location, for a height of 4.72. The right armpit high is 64.92 for a target of 69.64. Price reaches the target 71% of the time, so be conservative. I'd use the 68 target because I use resistance over the measure rule any day of the week.

Answer 3 (stop?): The right shoulder low (62.80) is a good stop loss price. I'd put is at 62.73, an oddball number. That makes the potential loss of 5%, assuming entry at the close of 66.

You can see that price failed to reach overhead resistance at 68. Resistance is not a specific point but a zone or area of prices. Drawing an up-sloping trendline below the minor lows, like that shown, would have been a good sell signal or you could wait for the stop to take you out (but you'd lose more money).

The End.

See Also

 
Top of page
 

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book

Copyright © 2005-2022 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Links Privacy/Disclaimer