Intra-Cellular Therapies Is in a Rising Trend: Here's How to Trade It Now

Intra-Cellular Therapies  (ITCI) has a mission to deliver innovative treatments to improve the lives of individuals with neuropsychiatric, neurologic, and other disorders. Let's take a close look at the stock charts of this New York-based healthcare company.

In the daily bar chart of ITCI, below, I can see that the shares have pulled back in what looks like an ongoing advance. ITCI trades above the rising 50-day moving average line and above the rising 200-day line.

Trading volume has been more active since early November and I view that as a positive development. The daily On-Balance-Volume (OBV) line shows us two trends -- a rising trend the past year and another rising trend from early November.

The Moving Average Convergence Divergence (MACD) oscillator has been correcting lower in January but still stands above the zero line and it has been narrowing recently. A bullish upside crossover could develop soon. 

In the weekly Japanese candlestick chart of ITCI, below, I can see a rally unfolding the past three years. The shares are trading above the rising 40-week moving average line. The weekly OBV line shows us a choppy sideways trend but also the start of an uptrend from October.

The MACD oscillator is above the zero line but shows some narrowing recently. I can see some upper shadows on the candles in December and a lower shadow in January.

In this daily Point and Figure chart of ITCI, below, I can see a downside price target in the $61 area. Strength above $70 should turn this chart bullish. 

In this weekly Point and Figure chart of ITCI, below, I can see an upside price target in the $97 area. 

Bottom-line strategy: Aggressive traders could go long ITCI on strength above $70 risking to $63. The $97 area is my price target for now.

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