Incyte Could Rise Another 15% From Here

Shares of biopharmaceutical manufacturer are close to an upside breakout.

Incyte Inc. (INCY) is in a cutting-edge industry and its shares are poised for an upside breakout. Let's check out the charts for a technical strategy that makes sense.

In the daily bar chart of INCY, below, we can see some rapid swings. The shares declined from the middle of December to late March before rallying sharply into late April. Prices recouped their losses and went on to make new highs. Prices corrected from late April into June before rallying to new highs yet again. INCY is close to pushing up again to new highs. Prices are above the rising 50-day moving average line and the rising 200-day moving average line.

The daily On-Balance-Volume (OBV) line is moving up and tells us that buyers of INCY have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero since early April and is turning upward to a fresh buy signal. 

 

In the weekly bar chart of INCY, below, we can see that prices are emerging from a large base formation. Prices are above the rising 40-week moving average line and the trading volume has also moved in a saucer-like formation with increased volume in the right half of the base.

 

The OBV line shows a constructive rise the past two years or so. The MACD oscillator is in a bullish rising pattern above the zero line. 

 

 

In this daily Point and Figure chart of INCY, below, we can see that a trade at $110.87 will be an upside breakout. A $125 price target is projected. 

 

 

Bottom-line strategy: Aggressive traders could go long INCY at current levels risking a close below $101. The $125 area is our initial upside price target. 

 

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