ACIA - Acacia Communications Inc. Tue 24'th Jan 2017
Stock analysis for Tue 24'th Jan 2017 (Updated daily)
Buy candidate since 2017-01-23
Acacia Communications Inc. Stock Analysis
Acacia Communications Inc. gained 7.51% in the last trading day, rising from USD 62.88 to USD 67.60. , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 6 of the last 10 days days and is up by 6.26% over the past 2 weeks. Volume also increased in the last day along with the price, which is a positive technical sign, and, in total, 1.36 million more shares were traded than the day before. In total, 1.76 million shares bought and sold for approximately USD 119 million.
Acacia Communications Inc. lies the upper part of a wide and strong falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at USD 68.75 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -17.4% during the next 3 months and, with 90% probability hold a price between USD 41.53 and USD 56.78 at the end of this period.
Only positive signals in the chart today. Acacia Communications Inc. holds buy signals from both short- and long-term moving averages, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down there will be some support from the lines at USD 62.41 and USD 64.60. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday January 10, 2017, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.
Relative Strength Index (RSI)
RSI14 is 60 and the stock is currently not being overbought or oversold
Support & Resistance
Acacia Communications Inc. finds support from accumulated volume at USD 65.67, USD 63.26, and USD 57.54. On the upside the stock meets some resistance from accumulated volume at USD 71.24, USD 73.02 and USD 73.66.
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 4.30 between high and low, or 6.77%. For the last week, the stock has had a daily average volatility of 4.95%.
Our recommended stoploss: USD 67.00 (-0.89%) ( criteria: risk and position in trend)
Several short-term signals are positive and despite the stock being in a strong falling trend we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term.