LLY: 15-Month Base on Base & 235% Volume Breakout

690
The Setup:
Eli Lilly (LLY) is capitalizing on a massive fundamental double-catalyst—including new broad Medicare coverage for its weight-loss drugs—to trigger an explosive move. The stock has carved out a massive Base-on-Base structure on the monthly chart. After a deliberate retail shakeout, it immediately recovered the 50-Day Moving Average, broke out, and cleanly retested the structural breakout level. It has now launched to new All-Time Highs on a 235% Relative Volume surge, displaying extreme relative strength as capital aggressively rotates out of tech and into defensive healthcare giants.

Tip: Use ELIL for a 2x leveraged ETF.

Reasoning:
  • Stacked Base on Base Structure (5-month consolidation resting on a 15-month base)
  • Retail Shakeout & 50MA Recovery (Cleared weak hands and regained institutional support)
  • Structural Retest (Orderly pullback to confirm old resistance as new support)
  • Breakout to All-Time Highs on 235% Rvol (Massive institutional volume footprint)
  • Fundamental Double-Catalyst (European regulatory backing + Medicare GLP-1 expansion)
  • Leverage Option: ELIL (2x ETF)

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