Acacia Communications (ACIA) has done well since its debut in May. Prices consolidated in June before a triple in the next six weeks! Is this 1998, or what? ACIA has been in another sideways consolidation the past five weeks or so, and could be poised for yet another move higher.
In this daily chart, above, we can see all the trading in ACIA since the IPO. Prices are above the flat-to-rising 20-day moving average line. The 50-day average is pointed up, defining the trend. The On-Balance-Volume (OBV) has been rising the whole time and confirms the rally.
The Moving Average Convergence Divergence (MACD) oscillator generated a liquidate longs sell signal in late August, but could be approaching a new buy signal soon as the two averages of the indicator are narrowing. The chart and the indicators look bullish, but a sell stop just below $99 would help me sleep at night.
This Point and Figure chart of ACIA, above, shows the straight up advance in August. Awesome. Prices have been consolidating these gains, but you can see the rising demand as prices make higher lows. A breakout over $128 could start a long-term advance to around $180 using a horizontal "count" and projecting it upward from a breakout at $130.