Intercept Pharmaceuticals (ICPT) Turns Back Up

Intercept Pharmaceuticals, Inc. operates as a biopharmaceutical company. The firm engages in the research, development and commercialization of novel therapeutics in treating chronic liver diseases. Its product pipeline includes OCALIVA which is used for the treatment of biliary cholangitis, nonalcoholic steatohepatitis, sclerosing cholangitis and biliary atresia.

Take a look at the 1-year chart of Intercept (NASDAQ: ICPT) below with the added notations…

Chart of ICPT provided by TradingView

ICPT has hit the $18 mark as resistance (red) on multiple occasions over the past few months. The stock appears to be turning higher and may be running back up to the area again. A break above $18 could lead to much higher prices for ICPT.

The Tale of the Tape: ICPT has an important level of resistance around $18. A long trade could be entered on a breakthrough of that level, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $18 area.

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 


Do not trade options until you watch my urgent message:

Learn how to use this simple, yet extremely powerful options strategy 

and experience substantial gains with options…