INCY breaks above 20-day moving average for the first time since March 5th
Incyte Corporation (INCY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, INCY ended Thursday at 73.05 gaining $3.46 (4.97%) on low volume, underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 71.48, the market confirmed its breakout through the previous session high after trading up to $1.80 above it intraday.
Daily Candlestick Chart (INCY as at Mar 26, 2020):
Thursday's trading range has been $4.58 (6.67%), that's slightly above the last trading month's daily average range of $4.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for INCY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 13th, INCY actually lost -3.03% on the following trading day.
Incyte managed to close above the 20-day moving average at 72.09 for the first time since March 5th. Prices are trading close to the key technical resistance level at 75.81 (R1).
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Incyte. Out of 284 times, INCY closed higher 55.28% 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 52.11% with an average market move of 1.41%.