Acacia Communications (ACIA) has been trading as a public company for a short time but it has already become a good student of technical analysis.
In this daily bar chart, above, we can see how ACIA traded with the rising 20-day moving average line and dips toward that line were buying opportunities. The 50-day average has also been effective, with dips on Monday and Tuesday a buying opportunity. The On-Balance-Volume (OBV) line is turning up with the price action and tells us that buyers are being aggressive. The Moving Average Convergence Divergence (MACD) oscillator has started to narrow toward a new buy signal just above the zero line. After six or seven weeks of range trading, it looks like ACIA is poised for further strength. A close above $125 is likely to be the trigger point for further gains. Traders using a Point and Figure chart (below) may be waiting for a break above $130 as their signal to going higher.