So here's how the weight-loss drug wars are playing out on a Monday: Eli Lilly and Company (LLY) shares are climbing, and it's not because of some earth-shattering news from Lilly itself. It's because Novo Nordisk A/S (NVO), its main rival in the obesity treatment arena, just had a bit of a stumble in a clinical trial. When one giant trips, the other tends to get a little boost.

The broader market was basically flat, but healthcare was up a bit. And Lilly, it seems, decided to go along for that ride with a little extra spring in its step, thanks to its competitor's news.

When a Trial "Miss" is Your Gain

Novo Nordisk's stock hit a 52-week low. The reason? Results from its REDEFINE 4 trial. The company was testing its weight-loss drug candidate, CagriSema, head-to-head against Eli Lilly's already-approved drug, tirzepatide (sold under the brands Zepbound and Mounjaro).

The goal was to show that CagriSema was at least as good—what's called "non-inferior"—as Lilly's drug. It wasn't. After 84 weeks, patients on CagriSema lost 20.2% of their body weight. Not bad, right? But patients on Lilly's tirzepatide lost 23.6%. That gap was enough for the trial to officially miss its mark on non-inferiority.

The trial had 809 subjects, and while CagriSema showed a safe profile, the results just didn't meet expectations. So now Novo Nordisk is looking ahead, pinning some hopes on its REDEFINE 11 trial, with results expected in the first half of 2027, which is supposed to really show what CagriSema can do.

In the meantime, the market's reaction was pretty clear: one company's disappointment is another's opportunity.

Reading the Tea Leaves in Lilly's Stock Chart

Even with the good news vibe, a look at Lilly's technical indicators tells a more nuanced story. The stock is currently trading 3.5% below its 20-day simple moving average and 5.2% below its 100-day average. That often suggests some short-term weakness, which is interesting because the stock has had a monster run over the past year and is still much closer to its 52-week highs than its lows.

The Relative Strength Index (RSI) is sitting right at 50.00, which is the definition of neutral—not overbought, not oversold. Meanwhile, the MACD indicator is at 0.15, which is below its signal line at 0.22. That's typically read as a bearish signal.

So you've got neutral momentum from one indicator and bearish pressure from another. It's a mixed bag, suggesting traders might want to keep an eye out for which way the sentiment breaks next.

• Key Resistance: $1,100.00
• Key Support: $950.00

At the end of the day, Eli Lilly shares were up 4.33%, trading at $1,053.25. It's a nice move, fueled partly by the broader market and partly by a rival's clinical trial not going according to plan. In the high-stakes game of weight-loss drugs, sometimes you win even when it's not your turn at bat.