ICPT pushes through Monday's high
Intercept Pharmaceuticals Inc. (ICPT) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ICPT ended Tuesday at 47.58 gaining $0.35 (0.74%), slightly outperforming the S&P 500 (0.36%) ahead of Wednesday's earnings report. Closing above Monday's high at 47.25, the market confirmed its breakout through the previous session high after trading up to $1.06 above it intraday.
Daily Candlestick Chart (ICPT as at Aug 04, 2020):
ICPT is set to report earnings on Wednesday. For the upcoming report, analysts expect the company to have earned $-2.89 per share. The company's last earnings report was released on May 11, 2020, when Intercept Pharmaceuticals Inc. reported earnings of $-2.86 per share beating market expectations by 3.1%.
Tuesday's trading range has been $1.70 (3.63%), that's below the last trading month's daily average range of $2.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for ICPT.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 1st, ICPT actually gained 1.23% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 45.17 where further sell stops might get activated. With prices trading close to this year's low at 42.19, downside momentum could speed up should Intercept break out to new lows for the year. Further buying might move prices higher should the market test July's close-by high at 49.38.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Intercept. Out of 121 times, ICPT closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.33% with an average market move of 8.85%.