INCY closes lower for the 2nd day in a row
Incyte Corporation (INCY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, INCY ended Wednesday at 89.94 losing $1.49 (-1.63%), but still slightly outperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 90.99, the market confirmed its breakout through the prior session low after trading up to $1.14 below it intraday.
Daily Candlestick Chart (INCY as at Sep 16, 2020):
Wednesday's trading range has been $3.14 (3.39%), that's slightly above the last trading month's daily average range of $2.78. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for INCY.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on August 7th, INCY actually lost -2.69% on the following trading day.
Incyte closed back below the 200-day moving average at 89.94.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 87.41 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for Incyte. Out of 276 times, INCY closed lower 56.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 50.00% with an average market move of 0.30%.