Eli Lilly and Company (NYSE:LLY) shares are up on Monday as the company benefits from positive market sentiment following Novo Nordisk A/S’ (NYSE:NVO) disappointing trial results for a weight-loss drug, adding pressure as broader markets edged lower.

Eli Lilly Gains as Novo Nordisk Trial Setback

Novo Nordisk’s stock hit a 52-week low after its REDEFINE 4 trial failed to demonstrate non-inferiority in weight loss compared to Eli Lilly’s tirzepatide, marketed under the Zepbound and Mounjaro brands.

The trial showed a weight loss of 20.2% with CagriSema versus 23.6% with tirzepatide, leading to a significant drop in Novo Nordisk shares.

The REDEFINE 4 trial involved 809 subjects over 84 weeks, and while CagriSema demonstrated a safe profile, the results did not meet expectations.

The company is now looking forward to the REDEFINE 11 trial results, expected in the first half of 2027, which aims to assess the full weight-loss potential of CagriSema.

The broader market is experiencing slight gains, with the S&P 500 up 0.04% and the Healthcare sector showing a 0.58% increase.

Eli Lilly’s performance aligns with this positive sentiment, indicating that the stock is moving in tandem with the broader market trends.

LLY’s Technical Indicators Show Mixed Signals

The stock is currently trading 3.5% below its 20-day simple moving average (SMA) and 5.2% below its 100-day SMA, indicating a potential short-term weakness despite its overall strength.

Over the past 12 months, shares have increased significantly and are currently positioned closer to their 52-week highs than lows.

The RSI is at 50.00, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum, indicating that traders should watch for potential shifts in market sentiment.

• Key Resistance: $1100.00
• Key Support: $950.00

LLY Price Action: Eli Lilly shares were up 4.33% at $1053.25 at the time of publication on Monday, according to Benzinga Pro data.

Photo by M7kk via Shutterstock

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