Biopharmaceutical firm Incyte (INCY) was upgraded by TheStreet's Quant Ratings service Friday. Let's see if the charts and indicators have a positive spin too.
In this daily bar chart of INCY, below, I see a large sideways trading pattern for shares the past year. Prices have been testing the $84 area a number of times since April. INCY is trading above the rising 50-day moving average line and above the bullish 200-day moving average line.
The On-Balance-Volume (OBV) line shows a good rise from September and helps to confirm the price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator recently touched the zero line and looks to be turning upwards again to a new outright buy signal.
In this weekly Japanese candlestick chart of INCY, below, I can see a promising looking picture. Prices held the $65 area several times in the past year. This area should be considered strong support. Prices are trading above the 40-week moving average line.
The weekly OBV line shows me a long and stable move until October when the OBV line starts to firm. The MACD oscillator is bullish.
In this daily Point and Figure chart of INCY, below, I can see a potential upside price target in the $111 area.
In this weekly Point and Figure chart of INCY, below, I can see the same $111 price target as the daily chart above.
Bottom line strategy: Traders could go long INCY on strength above $85 risking to $77.50. The $100 and $111 areas are my price targets.
