Fri 21'st Apr 2017
Acacia Communications Inc. Stock Analysis
Technical stock analysis for Fri 21'st Apr 2017
Sell candidate since 2017-04-21
Acacia Communications Inc. lies in the middle of a very wide and strong falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -10.3% during the next 3 months and, with 90% probability hold a price between USD 42.39 and USD 55.32 at the end of this period.
There are few to none technical positive signals at the moment. Acacia Communications Inc. holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at USD 53.24 and USD 54.59. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Thursday April 20, 2017, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 25 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
Acacia Communications Inc. finds support from accumulated volume at USD 51.95, USD 51.30, and USD 50.56. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 54.04, USD 63.43 and USD 52.15.
The stock is about to test the resistance from accumulated volume at USD 54.04 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved USD 1.93 between high and low, or 3.71%. For the last week, the stock has had a daily average volatility of 4.01%.
Acacia Communications Inc. is oversold on RSI14 (25). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
Acacia Communications Inc. holds several negative signals and is within a very wide and strong falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Sell Candidate.