When we reviewed the ACAD charts on April 5 we wrote that, "It is not important where ACAD declines to the $16 area as suggested by the Point and Figure chart. It is not important if ACAD makes an oversold bounce. The important thing to remember is that ACAD is going to need a long repair process in the months ahead. Avoid."
Let's check out the charts again.
In the daily bar chart of ACAD, below, we still see a bearish picture with two large downside price gaps in early March and early April. The shares made only minor and temporary bounces after these gaps telling us that most traders do not consider this a "buy the dip" stock.
The slopes of both the 50-day moving average line and the 200-day moving average line are bearish. We can see a bearish dead or death cross of these two averages in the middle of March.
The On-Balance-Volume (OBV) line has sunk to a new low as sellers of ACAD remain more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has a long recovery before reaching the underside of the zero line.