LLY Technical Analysis for Feb. 7

Chart Insights (Hourly Timeframe):
1. Trend Analysis:
* The price shows an upward trend within a rising channel. Support levels align with the lower trendline around $827, while the upper boundary projects resistance near $880–$900.
* MACD: A bearish crossover with a declining histogram suggests a possible pullback or consolidation phase.
* Stochastic RSI: The oscillator is moving down from the overbought zone, signaling decreased momentum.

2. Key Support/Resistance Levels:
* Support: $827, $816, $798.
* Resistance: $870, $887, $900.

3. Volume:
* Volume spikes align with upward movements, but the recent decline indicates waning bullish enthusiasm near resistance.

Options GEX Analysis:

1. Call Walls:
* Significant resistance at $887 (78.68% Call Wall) and $900 (89.5% Call Resistance / Gamma Wall).
* Likely a tough level for bulls to break without substantial volume.

2. Put Walls:
* Support levels at $762.5 (HVL), $750 (2nd Put Wall), and $740.

3. Market Sentiment:
* GEX leaning bullish (27.6% Calls), but IV (7.7) and IVx avg (30.4) imply low implied volatility—cautioning reduced movement potential.

Trading Plan
Bullish Scenario:
* Conditions: If LLY maintains support above $860 and breaks $870 with increased volume.
* Strategy: Buy Call Option at $870 strike. Target $887–$900.
* Entry: Upon a breakout above $870.
* Stop Loss: Below $860.
* Profit Target: $887–$900.

Bearish Scenario:
* Conditions: If LLY loses $860 support and stochastic RSI continues bearish.
* Strategy: Buy Put Option at $850 strike. Target $827–$816.
* Entry: Upon breakdown below $860.
* Stop Loss: Above $870.
* Profit Target: $827–$816.

Disclaimer:
This analysis is for educational purposes only and not financial advice. Always confirm real-time GEX updates and monitor price action during the market session. Practice proper risk management.