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Eli Lilly (NYSE:LLY) has been under pressure over the past couple of months. In fact the stock topped on March 26, 2019 at $132.13 a share. Since that high pivot, LLY has declined by 14% and is currently trading at $112.84. Traders and investors should note that the stock is now trading below its 50- and 200-day moving averages.
This weak chart formation usually signals further downside in the near term. Eli Lilly's next key support level is around $105, which is an important level that was defended in October and December 2018. Often, when a stock trades down to a major support area it will be defended again when initially retested.
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