Summary
ACHC has broken above a key resistance level at $13.72, currently trading at $14.64 (6.7% beyond the level). This technical breakout signals buying pressure and suggests potential upward momentum. The RSI at 54.3 indicates neutral momentum. This is a 100-day trendline break, which is more significant than shorter-term breaks as it indicates a potential shift in the longer-term trend direction.
Technical Chart
Breakout Analysis
When a stock breaks through an established resistance level with conviction, it often signals that the previous price barrier has been overcome. The 6.7% move beyond the resistance level indicates strong buying pressure.
Key Levels to Watch
| Breakout Level | $13.72 |
| Current Price | $14.64 |
| Break Distance | 6.7% |
Investment Advisor Score
55.3/100
HOLDOur AI-powered investment scoring system analyzes multiple factors including fundamentals, technicals, and market sentiment to generate this score.
Company Overview
Acadia Healthcare Company, Inc.
Acadia Healthcare Co Inc acquires and develops behavioral healthcare facilities. Acute inpatient psychiatric facilities and specialty treatment facilities contribute the vast majority of Acadia's revenue in the United States. The company's revenue is derived from services rendered to patients for inpatient psychiatric and substance abuse care, outpatient psychiatric care, and adolescent residential treatment..
Why This Matters
This technical breakout in ACHC suggests that institutional investors are repositioning based on their analysis of the company's prospects. When stocks break through established technical levels, it often indicates a shift in market sentiment that can drive sustained price movement.
While the 3.3% profit margin is modest, it demonstrates the company is generating positive earnings. Traders should watch for margin expansion as a catalyst that could extend this move.
Financial Health (SEC Data)
Based on the latest SEC filings, here's an analysis of ACHC's financial position:
Profitability Analysis
| Revenue | $3.27B |
| Net Income | $107.44M |
| Profit Margin | 3.3% |
The 3.3% profit margin indicates modest profitability. The company is generating positive earnings but margins are relatively thin.
Options Market Insight
| Options Confidence | 56.0/100 |
| Signal | Neutral Bullish |
| Recommendation | SPECULATIVE |
| Unusual Activity Score | 1.5 |
Speculative setup. Some confirming signals but also red flags. Size accordingly.
Options Flow Factors:
- Early entry - good timing
- Strong signal alignment (6/6)
Risk Factors:
- No identified catalyst - why is it moving?
- Low institutional flow - mostly retail
Technical Indicators
| RSI (14) | 54.3 |
| MACD Signal | Bearish |
| 50-Day SMA | $14.94 |
| 200-Day SMA | $16.15 |
| Price vs MAs | Below both (Bearish) |
Next Levels to Watch
| 50-Day SMA | $14.94 |
| 200-Day SMA | $16.15 |
Trading Considerations
- Confirmation: Watch for sustained price action above $13.72
- Volume: Look for volume confirmation on continued moves
- Role Reversal: Broken level at $13.72 may now act as support
- Risk Management: Always use stop-loss orders
Conclusion
ACHC's break above the $13.72 resistance level represents a significant technical development. Traders should monitor price action and volume for confirmation of this bullish signal.
Related Analysis for ACHC
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. Always do your own research and consider your risk tolerance before making trading decisions.