ACIA still stuck within tight trading range


Acacia Communications Inc. (ACIA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team

Highlights

ACIA closes below its opening price unable to hold early session gains
ACIA unable to break through key resistance level
ACIA closes higher for the 4th day in a row
ACIA still stuck within tight trading range
ACIA closes within previous day's range after lackluster session

Overview

Moving higher for the 4th day in a row, ACIA finished Wednesday at 68.68 gaining $0.03 (0.04%), slightly outperforming the S&P 500 (-0.46%). Trading $0.15 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 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 (ACIA as at Sep 16, 2020):

Daily technical analysis candlestick chart for Acacia Communications Inc. (ACIA) as at Sep 16, 2020

Wednesday's trading range has been $0.21 (0.31%), that's below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ACIA. Prices continued to consolidate within a tight trading range between 68.27 and 68.90 where it has been caught now for the whole last trading week.

Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Shooting Star showed up on Monday, ACIA actually gained 0.18% on the following trading day.

Unable to break through the key technical resistance level at 68.70 (R1), Acacia Communications closed below it after spiking up to 68.85 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might speed up should prices move above the close-by swing high at 68.90 where further buy stops could get activated. With prices trading close to this year's high at 69.13, upside momentum might accelerate should the market be able to break out to new highs for the year. Further buying could move prices higher should the market test August's nearby high at 68.93.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Acacia Communications. Out of 196 times, ACIA closed lower 58.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.04% with an average market move of -0.34%.


Market Conditions for ACIA as at Sep 16, 2020

Loading Market Conditions for ACIA (Acacia Communications Inc.)...
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