Shares of Incyte Corporation (INCY) have skidded lower the past four months or so but they are up sharply this Monday. Is this a turnaround to the upside?
Let's check out the charts.
In this daily Japanese candlestick chart of INCY, below, we can see that the shares stalled several times up around $110 in late June and July. INCY turned lower in the summer but has been stabilizing around $80 since early November. Prices look like they will close above the declining 50-day moving average line. The slope of the 200-day moving average line is still positive.
The On-Balance-Volume (OBV) line turned lower from July but appears to have made a low in late November. A rising OBV line tells us that buyers are now more aggressive. The 12-day price momentum study shows higher lows from November even though prices have been making equal lows. This is a bullish divergence and can foreshadow a move to the upside.