This “insight” is regarding technical analysis versus what the company may offer regarding drugs. Yes INCY is a drug maker. The more interesting aspect is the sector in general. The sector has been under fire with the government pushing to stop price gouging. With drug pricing reaching insane levels, the drugmakers took a big hit over the last year. Not all names are affected but INCY was a name that struggled for gains while the rest of the market rallied. This year it is a different story with INCY. The stock rallied back since the start of the year and has been going back and forth in recent trading sessions. Now I normally HATE chart patterns, but hard to ignore this one. With the stock starting to “Flag” or “Pennant”, we could be finding a huge breakout opportunity in either direction. Basically, it depends on which way INCY breaks. Breaking resistance or support. The support is the ascending trendline higher, and resistance is the descending trend line. If you see my illustration, it is hard to ignore the red lines. Now, I am not touching INCY until a break-out occurs. Once it does, expect a big trending move to take place. INCY HAS to be on your watchlist for the near term.
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