2 Giants in Different Technical Stages: Eli Lilly and Broadcom

Published 06/05/2025, 03:14 AM

Eli Lilly and Company (NYSE:LLY):

This non-tech mega cap, that is part of the top 10 or top 15 companies in the SPX by market cap, has been hammered after the last earnings report, finding once again support at the $700 zone (November 2024, April 2025, and May 2025), which is the lower edge of the volume profile. The recent MACD crossover suggests this bounce has more fuel.

Right now, the price is facing the 50 daily moving average in confluence with the upper Bollinger band. Some consolidation is possible but not guaranteed. Eli Lilly is in bullish mode considering its price above $732.6, the weekly central level provided last Friday, and after crossing the first bullish target $750.9, the price managed to close today right at the monthly central level $765.3, which is on confluence with $764.2, the next weekly level.

The price action during the last hours today presented a small retrace, not enough to set a shooting star, $750.9 can be now be the reference to manage risk for long positions and more risk aversion, otherwise the same central level $732.6 can continue as the reference for a line in the sand.

Monthly levels-wise, this move can reach $821 if the resistance zone mentioned (50DMA, Bollinger and monthly+weekly level) is quickly overcome.LLY-Daily Chart

AVGO:

Broadcom (NASDAQ:AVGO) has reached new all-time highs, the V-shaped recovery is complete, and the last candle is a shooting star crossing the higher Bollinger band, which suggests a consolidation is imminent. The RSI adds more signs of overheated conditions.

Broadcom is far above its $239.8 central level, setting a bullish tone for the week when the price opens above it. Today, the rejection occurred at the resistance level $263.3, after a breach that lasted 30 minutes when the market opened today.

$254.7 can be used as a reference to manage risk for a conservative approach, but so far $278 and the $310 levels cannot be ruled out for the coming weeks. Remember that Broadcom has very strong fundamentals; they were posted at the end of 2024.

AVGO-Daily Chart

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Disclaimer: This technical analysis is educational and not intended to be investment advice.

Have a wonderful day.

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