Hope his magic works here. RRM Incyte Likely to Incite Further...

Hope his magic works here. RRM
Incyte Likely to Incite Further Gains
By BRUCE KAMICH Follow | MAR 10, 2017 | 8:43 AM EST


Stock quotes in this article: INCY
Incyte (INCY) is the No. 1 gainer in the S&P 500 since the 2009 bottom according to my boss here at RealMoney, Jim Cramer. Jim notes that INCY is up 6,543% (you read that right) over the past eight years. Jim says that INCY is one of the great biopharma plays with a super pipeline. Great story for sure, but how about the charts and indicators? Can this historic rally keep going? Let's take a look at the charts and indicators.

In this daily bar chart of INCY, above, going back 12 months we can see a bullish golden cross of the 50- and 200-day moving averages back in September. INCY is above, but not too far above, the rising 50-day moving average line and above the rising 200-day average line. The On-Balance-Volume (OBV) line has moved higher the past year to confirm the rally with signs of aggressive buying. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line, or in a bullish configuration, since September.

In this three year weekly chart of INCY, above, we see that prices are above the rising 40-week moving average line. The weekly OBV line has been positive since early 2016 and the MACD oscillator is in a strong upward move.

This Point and Figure chart of INCY, above, shows another upside breakout at $126 and a possible upside price target of $162. A reversal and breakdown below $118 would turn this chart bearish.
Bottom line/strategy: Approach the long side of INCY on any shallow dip in price, like one or two dollars. Add on strength above $140 and risk a close below $125 for now. The $160-$165 area is our first upside price objective from here.
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