Eli Lilly and Company (NYSE:LLY) traded 5% higher on Thursday morning, after reporting positive results from recent trials for a new diabetes treatment.
The global pharmaceutical company announced the results of trials for its “glucose-dependent insulinotropic polypeptide” and “GLP-1 receptor agonist” treatments. Specifically, they produced a 2.4% reduction in blood glucose and an average of 11 kilograms in weight reductions in people with type 2 diabetes.
“These clinical trial results are unprecedented, and the impressive blood glucose and weight reductions seen may lead to a new treatment option for people with diabetes,” explained Juan Frias of the National Research Institute.
Looking at the LLY chart below, with regard to its market cycles, we see the stock as beginning the rising phase of its current “minor” cycle. It is still early in the cycle and so we see a more upside.
However, this stock has been a runaway train, and so we believe a pullback is likely.
Given its positive momentum, a drop to near $106 would likely be a buying opportunity.
Eli Lilly and Company (LLY) Stock Chart with Weekly Bars
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