Here’s my take on Align Tech ($ALGN). – February 26, 2021
ALGN
I want to talk about Align Technology ( NASDAQ: ALGN ) today. This stock has been on a tear; I have actually used their product. They do the teeth thing, that makes your snaggleteeth actually not too bad. It keeps you from having tiger’s breath because you can’t floss and you have got all of this gunk in your teeth and it is just an obsolete mess. Now, my breath smells fresh as a flower and it’s because my teeth are so darn straight, and thank you very much to this company for that.
So what do we have here? The stock gapped up here and since that time here, on earnings last year, it has just run and run and run. It hasn’t really given you much of an opportunity to buy, maybe a little bit here, definitely a little bit here. But as you can see that was actually just before earnings. It is a problem to buy stocks like this, you just don’t have that many opportunities. But you can see, this stock has been in a long base for the last few years and now it seems to be taking off again.
I look at this and I think it would be nice to see the stock kind of drifting around here a little bit more, and maybe it will, kind of forming a little bit more of a base, and then breaking out like that, it would be nice to see that. But we are not seeing that, not yet. We are seeing the stock, though, hold in this range. It was up today on a really nasty day for the Nasdaq and so that is good.
What I would suggest doing is, taking a look at this stock and then just have your stop down here. If the stock falls, from where you are buying it here, down to there, then you need to be out of the stock or at least reduce your position. You can see, every once in a while, a penetration of the 50, and then the stock rockets up.
I think this is a problem for a lot of traders. I look at the 50-day moving average a lot but I don’t rely on it as the bible of trading. There are too many times when you will see a stock penetrate the 50-day moving average, here, by over 3 percent, stops everybody out and then the stock recovers again.
You want to be using the 50-day moving average as just kind of a general reference, and here we are, back at the general reference. So I think you could just buy this and hold it, as long as the stock doesn’t fall below here.
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