The technical picture worsened for Eli Lilly stock in December as it completed a pattern known as a “Death Cross”. This pattern is drawn when a stock’s 50-day moving average breaks below its 200-day moving average. A Death Cross typically forecasts another 4-6 months of selling pressure for a stock.

Eli Lilly (NYSE: LLY) began a roll in late 2020 that lasted almost four years. This decline includes a sell-off earlier this week after Lilly cut its 2024 revenue guidance due to lower-than-expected demand for its obesity and diabetes drugs.