Is Lilly Headed for the Valley?

We last visited with Eli Lilly & Co. (LLY) at the end of May when our Quant Ratings service downgraded the stock. In that update we noted that, "In this Point and Figure chart we can see how prices broke support at $79.57 and are pointed down to a potential target of $71.94... Today's downgrade of LLY adds to the bearish picture and gives us more confidence to execute a bearish strategy."

Over the subsequent three months Action Alerts PLUS holding LLY has made a round trip back up toward its April highs and back down to retest the May nadir. Prices and the underlying indicators have not improved much since May and the overall chart pattern looks more like distribution (selling)....333 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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