A Reversal for Acacia Communications, Inc. (ACIA) Is Not Near. The Formed Bearish Wedge Down

June 20, 2017 - By reb123z

The stock of Acacia Communications, Inc. (ACIA) formed a down wedge with $41.94 target or 7.00 % below today’s $45.10 share price. The 6 months wedge indicates high risk for the $1.77 billion company. If the $41.94 price target is reached, the company will be worth $123.90M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 0.04% or $0.02 during the last trading session, reaching $45.1. About shares traded. Acacia Communications, Inc. (NASDAQ:ACIA) has risen 55.67% since June 20, 2016 and is uptrending. It has outperformed by 38.97% the S&P500.

Acacia Communications, Inc. (NASDAQ:ACIA) Ratings Coverage

Among 5 analysts covering Acacia Communications (NASDAQ:ACIA), 3 have Buy rating, 0 Sell and 2 Hold. Therefore 60% are positive. Acacia Communications had 9 analyst reports since June 7, 2016 according to SRatingsIntel. The firm has “Buy” rating given on Tuesday, October 11 by Needham. Morgan Stanley initiated the stock with “Equal-Weight” rating in Thursday, December 8 report. Deutsche Bank maintained Acacia Communications, Inc. (NASDAQ:ACIA) on Thursday, July 14 with “Buy” rating. On Tuesday, June 7 the stock rating was initiated by Cowen & Co with “Outperform”. Goldman Sachs initiated it with “Neutral” rating and $39 target in Tuesday, June 7 report. The rating was maintained by Needham with “Buy” on Friday, August 12. The company was maintained on Friday, September 9 by Deutsche Bank. The rating was initiated by Deutsche Bank on Tuesday, June 7 with “Buy”. The stock has “Buy” rating by Needham on Tuesday, June 7.

More recent Acacia Communications, Inc. (NASDAQ:ACIA) news were published by: Globenewswire.com which released: “Acacia Communications to Present at June Conferences” on May 24, 2017. Also Bizjournals.com published the news titled: “Maynard-based Acacia identifies ‘quality issue’ in its fiber optic components” on May 31, 2017. Prnewswire.com‘s news article titled: “Stock Performance Review on Communication Equipment Industry — Infinera …” with publication date: June 16, 2017 was also an interesting one.

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