ACIA breaks above 100-day moving average for the first time since March 4th
Acacia Communications Inc. (ACIA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ACIA finished Thursday at 67.50 gaining $1.11 (1.67%), significantly underperforming the S&P 500 (6.24%). Today's close at 67.50 marks the highest recorded closing price since March 4th. Closing above Wednesday's high at 67.27, Acacia Communications confirmed its breakout through the prior session high after trading up to $0.97 above it intraday.
Daily Candlestick Chart (ACIA as at Mar 26, 2020):
Thursday's trading range has been $1.86 (2.78%), that's slightly below the last trading month's daily average range of $2.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ACIA.
The market managed to close above the 100-day moving average at 67.38 for the first time since March 4th. After spiking up to 68.24 during the day, the share found resistance at the 50-day moving average at 67.55. The last time this happened on August 2, 2018, ACIA actually gained 12.69% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 69.00, upside momentum could accelerate should ACIA be able to break out to new highs for the year. As prices are trading close to March's high at 68.67, upside momentum might speed up should Acacia Communications mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Acacia Communications. Out of 16 times, ACIA closed higher 68.75% of the time on the next trading day after the market condition occurred.