In between press releases, ACAD becomes highly correlated to the XBI Biotechnology Index, with extra beta above and beyond. Below is a three day chart with the XBI and ACAD that shows a close correlation.
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A daily chart below, has the stock still consolidating the recent months gains. But there is a gap around the $24.00 area, that technically could get filled if the overall market puts in more than just the current pullback, as of today.
Bottom Line: ACAD has had a strong months worth of catalyst or positive press releases that has included the following.
1) EU strategy discussed during the second quarter conference call.
2) Roche buyout of ITMN, had a positive effect on biotechnology in general.
3) Breakthrough Therapy Designation granted from FDA.
4) Positive comments made from CNBC.
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