Saturday, June 24, 2017

ACHC Brokeout

Acadia Healthcare was pushing against fairly strong resistance and as of late has been touching up on it. At some point in March, April, May, and June, the stock as touched the resistance at roughly $46.50. Healthcare performed beautifully last week and on Thursday we saw ACHC break through the resistance and continue gaining on Friday. Currently the stock sits at $48.03 and in a seemingly good position.



                                                                                                                                                   

Back at the beginning of May the 50 day moving average crossed above the 200 day. Or, depending on how you look at it, the 200 day crossed below the 50 day. It means generally the same thing. It is more bearish in the manner in which ACHC crossed, but the breakout Thursday whisked away my cause for concern.




In the chart above you see the moving average cross and also the MACD cross. It has been trending up with the stock and could see levels similar to what it did back in early March.

Something to keep your eye on. Moving averages crossed and it broke through the fairly strong resistance.

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