Incyte Corporation (NASDAQ: INCY)

Incyte Corporation focuses on the discovery, development, and commercialization of proprietary therapeutics in oncology in the United States and internationally. It offers JAKAFI for the treatment of myelofibrosis and polycythemia vera cancers. The company’s clinical stage products include ruxolitinib cream that is in Phase II clinical trial for the treatment of alopecia areata and atopic dermatitis; and baricitinib, which is in Phase III clinical trial for treatment of rheumatoid arthritis.

Take a look at the 1-year chart of Incyte (NASDAQ: INCY) below with my added notations:

1-year chart of Incyte (NASDAQ: INCY)

Over the past 3 months, INCY has formed a clear level of resistance to watch at the $140 (red) level. The stock has tested that mark three times since May. A strong close above that $140 level would most likely lead to higher prices for INCY.

The Tale of the Tape: INCY has a key level of resistance at $140. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $140.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT