LLY: Strong Buy in My Radar List - Feb. 26

Technical Analysis (TA) & Price Action

Eli Lilly (LLY) is showing strong bullish momentum, currently trading within an ascending channel on the 1-hour timeframe. The stock recently tested the upper trendline and is consolidating near $900, a key psychological level.

Key observations:
* Trend Structure: LLY is in a strong uptrend, forming higher highs and higher lows within a well-defined price channel.

* Support & Resistance:
* Major Resistance: $912 (recent high)
* Key Support: $894, followed by $881
* Stronger Support Zones: $869 - $865 (confluence with PUT walls)

* MACD Indicator: Bullish momentum persists but shows slight signs of cooling off. Watch for potential continuation.

* Stoch RSI: Approaching overbought conditions, which may signal a slight pullback before another push higher.

Options Flow & GEX Analysis

The GEX (Gamma Exposure) indicator suggests a high call concentration around $900, aligning with our price action resistance. This means market makers may hedge aggressively if LLY sustains above this level, fueling further upside.

* IVR (Implied Volatility Rank): 19, with IVx avg at 32.7%, indicating relatively lower volatility.
* Call Side Bias: 23.4% of total options flow supports a bullish breakout scenario.
* Key GEX Levels:
* Strongest Resistance / CALL Wall: $900 → Break and hold here unlocks $920 (2nd CALL Wall).
* PUT Support Zone: $865 - $867.5 → A breakdown could trigger downside hedging, making this a critical level to hold.

Trade Plan & Suggestions
📌 Bullish Trade Setup (Preferred Play)
* Entry: Above $900 with confirmation (sustained hold above resistance).
* Target 1: $912
* Target 2: $920 (CALL Wall target)
* Stop-loss: Below $894

📌 Bearish Alternative (Hedge Play)
* Entry: Below $894 with volume breakdown.
* Target: $881 → $869
* Stop-loss: Above $900

Final Thoughts
LLY is one of the strongest setups on my radar. If it maintains above $900, it could trigger a gamma squeeze toward $920. However, failure to hold this level could result in a retest of $865-$869. Options positioning suggests a bullish bias, but watching price action closely is key.

📢 Risk Management: Always size positions according to your risk tolerance. Trade the setup, not the expectation.

🔹 Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and manage risk accordingly before trading.