I got a Buy Signal on LILLY ELI CO, symbol (LLY) at 51.93 on 2/1/2008
Price and moving averages:LILLY ELI CO, symbol (LLY), has closed above its Short time moving average.
Short time moving average is currently below mid-time, AND below long time moving averages.
The relationship between price and moving averages is: neutral in short-term, and neutral in mid-long term.
Bollinger Bands:LILLY ELI CO, symbol (LLY), has closed below the lower band by 179.1%%. Although prices have broken the lower band and a downside breakout is possible, the most likely scenario for LILLY ELI CO, symbol (LLY), is to continue within current trading range.
This picture becomes somewhat unclear due to the fact that Bollinger Bands are currently58.8%% narrower than normal.
The narrow width of the bands suggests low volatility as compared to LLY's normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 17 bars. The probability of a significant price move increases the longer the bands remain in this narrow range.
This commentary is not a recommendation to buy or sell. This is a commentary about a trade I made.
Fundamentals:I also like that LILLY ELI CO has an EPS of 2.046 which is and indication of profitability and not a very high dillution. The company is growing, as shown by a PEG (price/earnings growth) of 1.69. As a bonnus, it pays a dividend per share of 1.7
This one I will keep for the core portfolio. The 1.7 should help mittigate some risk
Recommend this article...
Last update : 13-02-2008 21:05
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