The trend of the overall market effects the volatility of individual stocks. Acadia is caught up in a market that is currently down trending. There is a high correlation of ACAD with the XBI small cap biotechnology index, shown below.
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The S&P will have a test of the most recent low coming up shortly. Below is a daily chart with prior support at 192.33 that held just four days ago. A break of the 192.33, than the next area of support is the very important 190.00 level.
Bottom Line: All stocks get caught up in a market down trend, and ACAD is not immune from that. So as the overall market moves lower, so do the majority of stocks. I expect the market to test the previous 192.33 low this week. A break of the 192.33 level, then a very important test of the 190.00 support will come into play. Thank you for reading.
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