is it possible to trace a INCOMING transactions to ones receiving wallet address?

not sure what is meant by incoming transaction in this case. But generally yes, it doesn't matter if transaction is incoming or outgoing. I assume this scenario: a transaction from Alice is made to Bob. Alice creates the transaction, and she refers to it as outgoing transaction, Bob sees it as incoming transaction.

So Alice creates let's say a standard P2PKH transaction, and in there one can see two sections: one from where to take the funds (the incoming part), and one where the funds shall go (the outgoing part). One can find references to the pubkeys in both parts. And these pubkeys can be used to decode into addresses.

Example: In one of my transactions, I had this code in the input section (TX_IN Script Sig):

...4730440220128487F04A591C43D7A6556FFF9158999B46D6119C1A4D4CF1F5D0AC1DD57A94022061556761E9E1B1E656C0A70AA7B3E83454CD61662DF61EBDC31E43196B5E0C10012102B12126A716CE7BBB84703BCFBF0AFA80283C75A7304A48CD311A5027EFD906C2...

which translates into:

47 --> push hex 47 (decimal 71) bytes on stack (usually the DER encoded signature)
       30 44 02 20 128487F04A591C43D7A6556FFF9158999B46D6119C1A4D4CF1F5D0AC1DD57A94
             02 20 61556761E9E1B1E656C0A70AA7B3E83454CD61662DF61EBDC31E43196B5E0C10
01 --> SIGHASHALL: this terminates the ECDSA signature
21 --> push hex 21 (decimal 33) bytes on stack (length of a compressed Public Key)
       02B12126A716CE7BBB84703BCFBF0AFA80283C75A7304A48CD311A5027EFD906C2
       corresponding bitcoin address is: 18KHdtRfkv4GaBidjNpNEQkpPwfXC39M9W

and this in the output section:

...90257300000000001976A914FCA68658B537382E27A85522D292E1AD9543FE0488AC...

which translates into:

9025730000000000 --> TX_OUT Value (hex 9025730000000000 is 0.07546256 in bitcoin)
19               --> TX_OUT PK_Script Length
76A914FCA68658B537382E27A85522D292E1AD9543FE0488AC --> the P2PKH Script:
    76: OP_DUP
    A9: OP_HASH160
    14: OP_Data14 (= decimal 20)
        FCA68658B537382E:27A85522D292E1AD:9543FE04
    88: OP_EQUALVERIFY
    AC: OP_CHECKSIG
  This is a P2PKH script to this address:
   FCA68658B537382E27A85522D292E1AD9543FE04
  and translates base58 encoded into this bitcoin address:
   1Q2tmgphDqFJxhFFYNrjBr5o8XKSSDKtXv

Summary: a transaction contains inputs and outputs, and with standard P2PKH transactions you can derive the addresses, from where to where funds move. For Bob having it as incoming transaction, one can trace the funds, where they came from.

The details of how transactions are assembled, how public keys are used, and how you can derive the corresponding addresses are explained in the bitcoin developer section documentation, and a good playground to get conversions between both is on TP's Go Bitcoin Tests. Oh, and of course I should mention Andreas' book "Mastering Bitcoin" as an amazing book. It's freely available online.