ACHC closes within prior day's range after lackluster session
Acadia Healthcare Company Inc. (ACHC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ACHC ended the week 11.33% higher at 27.52 after losing $0.21 (-0.76%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ACHC as at May 22, 2020):
Friday's trading range has been $1.04 (3.74%), that's below the last trading month's daily average range of $1.65. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACHC. Prices continued to consolidate within a tight trading range between 26.22 and 27.91 where it has been caught now for the last three trading days.
After having been unable to move above 27.91 in the previous session, Acadia Healthcare ran into sellers again around the same price level today, missing to move higher than 27.82. The last time this happened on Tuesday, ACHC actually gained 3.58% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 27.91 where further buy stops might get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Acadia Healthcare. Out of 799 times, ACHC closed higher 50.31% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.94% with an average market move of 1.35%.