Want to straighten out your account? Try Align Tech ($ALGN) (July 20, 2021)
ALGN
I want to talk about Align Tech ( NASDAQ: ALGN ) today. Here’s the thing, I mentioned this, this morning in the forum, actually, yesterday too. I like the way this stock has been trading, I really like the way it’s been trading here. It is just kind of setting up with this rising lows, a straight up-sloping line here, that’s really what I am trying to say, and then at the same time this flat top.
What we are waiting for here is for a breakout, ideally, above last Wednesday’s high, 653.86, so we will just say 650.00. When a stock is at $650.00, what’s an extra $3.00? This is where the stock was trading. You will notice the volume on this particular day, which was last Thursday, was actually high, and it was all selling volume.
The stock had a really crappy day and then the following day it fell down too, but volume was lower. And also, and this is important, the intraday low was higher than this low. And what that means is, that the sellers on this day, on Friday, were not as aggressive as the sellers on the prior day.
Meaning, the buyers that were so aggressive at 610.00, that they pushed the stock back up 2 percent before the close, those buyers were not even willing to let the stock get to 610.00 before they started buying. And so this 3 consecutive days down, that’s a recipe for a rebound. You just typically don’t see a stock going down 4-days in a row.
Here you actually did go down 4-days in a row, but it typically doesn’t happen. Here it goes down 4-days in a row, and then what happens today? It moves right back up through the 50-day moving average and once again we have heavier than average volume here.
This is really kind of a classic bottoming process within a base. This stock is still, technically, in a base, I will say that. But I think once the stock breaks out, if this stock pushes through 650.00, it could go a long way. If this stock breaks through 650.00 I think it could go to 750.00.
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