ACIA finds support at 200-day moving average
Acacia Communications Inc. (ACIA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ACIA finished the month -0.46% lower at 67.19 after tanking $0.76 (-1.12%) today on high volume, strongly underperforming the S&P 500 (1.54%). This is the biggest single-day loss in over a month. Today's close at 67.19 marks the lowest recorded closing price since May 28th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 67.61, Acacia Communications confirmed its breakout through the previous session low after trading up to $0.59 below it intraday.
Daily Candlestick Chart (ACIA as at Jun 30, 2020):
Tuesday's trading range has been $0.91 (1.34%), that's far above the last trading month's daily average range of $0.59. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ACIA.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 67.02 during the day, the market found support at the 200-day moving average at 67.07. The last time this happened on May 28th, ACIA gained 1.26% on the following trading day. The share closed below the 100-day moving average at 67.51 for the first time since June 11th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test May's nearby low at 66.12.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Acacia Communications. Out of 113 times, ACIA closed higher 55.75% 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 57.52% with an average market move of 2.41%.