$ACHC Forming possible spinning top on weekly chart right at the December gap-fill resistance around $29. After big earnings miss last quarter and removal of CEO in December, not much positive fundamental news to attract buyers leading up to another earnings release in late February. Targeting next support level at $20 by March.
Also of note, some unusual bearish...
Acadia Healthcare Co is sitting at a support level that was last tested in 2014, roughly 40. Will it hold this level? Who knows.
What to do?
Looking at the chart it would seem the R/R favors being long at these levels. A stop somewhere under 36 makes sense. Just have a place that you will EXIT.
The number one job of a trader is to protect...
Buy STOP @ 39.10 with an initial SL @ 35.88 (8% max. Risk) which is also the high of the previous box. After 2 month of a sideway move we see new highs. We will see if ACHC is following the broad markets down nowadays.
closed on 31st oct