Eli Lilly Co (LLY)
Pattern: Bear Flag (bearish pattern)
Flag Pole: -2.60--- The flag pole started on Jan 4th after LLY said it would miss earning estimates. This caused strong selling as LLY declined 6%. This flag pole measures 2.60
Flag: The flag started on the 6th and since then LLY has trended upwards but remained in a tight flag pattern. Volume has also contracted during the flag formation.
The Breakdown Target: A break of the flag would send LLY -2.60 downwards to around 37.66.
Here's the chart markup on LLY.
Things to note The 20 ema has capped any of the move upwards as LLY has not have been above to close above it. The 50 ema acted as support for the first decline and if LLY does break the bear flag it would also need to break this support.