1INCY trade ideas
Incy - Long - ContinuationI will be paying a lot of attention to biotech throughout 2017 with trumps victory, i believe he may have opened the door on this sector. there are many reasons to support this please do some research if you are interested. There are quite a few midcap stocks on my list. Incy here is just one of them which saw a near 20% rise on trumps win and looks to be forming a pennant for continuation
INCY - Short from 76.93 INCY has very high (3412) P/E ration & in the technical side INCY is forming a downward pennant in longer frame & a upward channel.
Both suggesting a decline, money-flow is showing neg-divergence & running strongly downward. We think it will decline around 60 or lower
You can check our detailed analysis on INCY in the trading room/ Executive summery link here-
www.youtube.com
Time Span: 13:00"
Suggestion date: Aug 17th (before market)
Trade Status: Opened Aug 17th
INCY approaching $100 INCY isn't quite there yet - as a good linear trending stock. The daily 50ma is beginning to look like it may be offering consistent support but it is early days.
There was congestion around the $50 and daily 200ma zone for several months in the middle of 2014 - which was some way off the February 2014 high of just above $70. Towards the end of last year price broke above this area with previous resistance becoming support. Since then we can see signs of a tentative trend beginning to form.
Yesterday's bar confirmed a bull flag - and price also broke out on higher volume. The bar was extremely bullish, too. However, the $100 figure is now too close to consider a long position at the moment - especially taking into account price action around the $50 half figure. But there is some way to go before the 2000 high of $145 so there is time for a better trend to develop here. If it does I will reconsider INCY then.
RE-ACCUMULATION ON INCY1. Relative Strength Analysis: INCY has outperformed both the SPY and XLV (Health Care Sector Spyder) over YTD, 6 and 12 month periods.
2. Wyckoff re-accumulation, 2nd break of CREEK after a successful test of supply in the form of the "Back Up to the Creek" (BUC).
3. A longer term cup n handle pattern, with the handle shown as a flag pattern after the breakout.
4. The best entry would have been on the breakout of the flag on above average volume, but I missed that entry. So there are two primary entries. 1st, enter at previous closing price 82.42; or 2nd, enter at re-test of CREEK at 78.89, or even to the flag breakout level at 77.05. 1st Target at 110.54, based on a breakout of the flag pattern. Initial stop based on an entry back to the flag breakout would be a close below 69.58, for the other 2 entry levels the stop is at a close below the last major swing low at 73.02. I prefer the first entry because on breakouts when they are strong you rarely get a good pullback entry.
