Public trading strategy
Eli Lilly's new weight-loss drug crushes expectations — ride the momentum
Thesis
Weight-loss drugs are one of the hottest markets in healthcare right now. Eli Lilly's latest clinical trial impressed experts, proving their new drug works well. As doctors prescribe this medication to more patients, the company's profits are expected to surge. Getting in on this momentum early could capture the wave of excitement from doctors and investors alike.
Strategy approach
Build a momentum strategy for LLY on the 4-hour (H4) timeframe. Go long when the price breaks above the upper Bollinger Band (20, 2) and the MACD line crosses above the signal line. Use a 2% trailing stop to lock in gains.
Markets and timeframes
LLYH4