Using technical analysis as a tool to track where your stock has been trading, and potentially heading is interesting. A weekly chart of Concert Pharmaceuticals, CNCE is below.
The all-time high for the stock is right at the $25.00 dollar mark, which occurred in 2015. The company has since evolved with a patent victory, and the broadening of the pipeline, which will be announced in early 2018. INCY is a stock we currently do not hold, but are tracking. The company is the owner of the drug Ruxolitinib, commercially known as Jakafi, a Janus Kinase Inhibitor (JAK). A weekly chart is below.
INCY is down around 33% from it's recent high of around $149.00, creating a lower risk entry point in the near future. The relative strength index (RSI) is near the two year low, as confirmation. Lastly, the S&P 500 has been on a tare higher throughout 2017 without any kind of meaningful pullback at all. The S&P 500 is higher around 18% on the year. Notice the RSI on the weekly chart below, is in very overbought territory, the highest reading that it's seen during the last three years.
Bottom Line: Charting stocks and indices can be interesting, and help to create better, lower risk entry points for the stocks that we are interested in. CNCE is approaching the all-time high and a breakthrough of the prior resistance of $25.00 would lead to fresh highs. INCY has been sold off creating a lower risk entry point sometime in the future. The S&P 500 on the weekly chart is as overbought more than anytime during the last three years. Thank you for reading.
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