ACHC finds buyers around 30.02 for the third day in a row
Acadia Healthcare Company Inc. (ACHC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ACHC ended Wednesday at 30.10 losing $0.14 (-0.46%), performing in line with the S&P 500 (-0.46%). Trading $0.60 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 30.13, the stock confirmed its breakout through the previous session low after trading up to $0.11 below it intraday.
Daily Candlestick Chart (ACHC as at Sep 16, 2020):
Wednesday's trading range has been $1.06 (3.48%), that's slightly above the last trading month's daily average range of $1.01. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACHC.
After trading as low as 30.02 during the day, the market found support at the 20-day moving average at 30.09. Acadia Healthcare found buyers again today around 30.02 for the third trading day in a row after having found demand at 30.13 in the prior session and at 30.14 two days ago. The last time this happened on August 7th, ACHC gained 2.25% on the following trading day.
Although ACHC is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 31.50, upside momentum might accelerate should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Acadia Healthcare. Out of 307 times, ACHC closed higher 55.37% 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 58.31% with an average market move of 1.52%.