Promising Signs: INCYTE CORP Setting the Stage for a Breakout.

A possible breakout setup was detected on INCYTE CORP (NASDAQ:INCY) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:INCY.

Insights from Technical Analysis

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 7 out of 10 to INCY. Although INCY is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• INCY is one of the better performing stocks in the Biotechnology industry, it outperforms 78% of 572 stocks in the same industry.
• INCY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so INCY is lagging the market slightly.
• In the last month INCY has a been trading in the 69.45 - 75.18 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• Looking at the yearly performance, INCY did better than 70% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

Our latest full technical report of INCY contains the most current technical analsysis.

How does the Setup look for NASDAQ:INCY

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:INCY is 9:

INCY has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 75.45. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 73.28, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NASDAQ:INCY?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.