INCY pushes through Thursday's high
Incyte Corporation (INCY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, INCY ended the week 3.38% higher at 99.37 after gaining $0.69 (0.7%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 98.93, the stock confirmed its breakout through the previous session high after trading up to $0.87 above it intraday.
Daily Candlestick Chart (INCY as at May 22, 2020):
Friday's trading range has been $2.35 (2.41%), that's below the last trading month's daily average range of $3.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for INCY.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on April 13th, INCY actually gained 3.72% on the following trading day.
Prices are trading close to the key technical resistance level at 100.14 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 104.81, upside momentum could accelerate should Incyte be able to break out to new highs for the year. As prices are trading close to May's high at 101.38, upside momentum might speed up should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Incyte. Out of 63 times, INCY closed higher 61.90% 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 57.14% with an average market move of 2.09%.