Acushnet Could Provide A Hole In One.Acushnet has been trading in a fairly consistent downtrend since reaching its all-time high, and on Jan. 20, the stock began to develop a descending trendline, which has been acting as heavy resistance. On Friday, Acushnet attempted to break up bullishly from the trendline but failed and wicked from the level.
The move higher to the trendline may have been caused by a double bottom pattern that Acushnet printed on Wednesday and Thursday near the $39.75 level. If the pattern continues to be recognized on Monday and big bullish volume comes in, it may give Acushnet enough power to break up from the descending trendline, which could indicate a larger reversal is in the cards.
Acushnet’s most recent higher low was printed on April 5 at $42.62 and the most recent lower low was formed at the double bottom. If the stock is able to break up from the trendline, it will print a higher high, which will negate the current trend.
The stock has developed bullish divergence on the daily chart, where the relative strength index has been in an uptrend while the stock moves in the opposite direction. This makes it likely that Acushnet will trade up higher in the future to correct the divergence.
Acushnet has resistance above at $42.18 and $44.55 and support below at $39.75 and $38.26.
