AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) dropped at the rate of -2.73% in Wednesday’s trading session from $5.50 to $5.35 The stock price went upward in 5 of the last 10 days and has generated 21.59% during the last two weeks. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. In the last day the trading volume dropped at the rate of -0.22 million shares and in total 6.57 M shares exchanged hands for about $35.13 million.
Inside ACRX’s Recent Trend
AcelRx Pharmaceuticals, Inc. (ACRX) lies in the upper part of a very wide and strong rising trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $5.53 will firstly indicate a stronger raising rate. Short-term traders are predicted to see a rally of 52.18% over the course of a quarter and, with 90% chance the price will be floating in the range of $5.46 and $8.42 in this timeframe.
AcelRx Pharmaceuticals, Inc. Technical Signals
ACRX has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $5.28 and $3.83. A break down through these support points will trigger sell signals. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Tuesday October 10, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.
AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) Support And Resistance Levels
AcelRx Pharmaceuticals, Inc. (ACRX) recorded volume accumulation so there will probably be a surplus of buyers at $5.23. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $5.50.
Accumulated volume is going to prevent the price from rising further at $5.50 and this action will lead the price to take a temporary pause or stay muted for a few days.
AcelRx Pharmaceuticals, Inc. (ACRX) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.45 between high and low, or 8.49%. The average volatility for the past week stood at 7.04%.
The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this offers great exit point for the short term traders. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.
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