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Eli Lilly (LLY) Recently Broke Out Above the 50-Day Moving Average
After reaching an important support level, Eli Lilly (LLY - Free Report) could be a good stock pick from a technical perspective. LLY surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Over the past four weeks, LLY has gained 5.2%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account LLY's positive earnings estimate revisions. There have been 5 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch LLY for more gains in the near future given the company's key technical level and positive earnings estimate revisions.