This squeeze is lining up for a solid breakout. Check out Align Tech (ALGN). (October 09, 2017)


Today let’s look at Align Technology ( NASDAQ:ALGN ). This is like the best-positioned stock I have seen today. This is in a squeeze. The market, just in general, looks like it is just going to pause for a bit. I am not calling a top or anything; that is not what I do. There are several people in public that will be happy to do that for you, they are much smarter than am. If you don’t believe it just ask them. For us, we are just looking for things that are still giving us potential buy signals. This would be one of them.

This volume bar here is kind of messing up the rest of the volume characteristics, so I am going to get rid of this by zooming in. Now we get a better sense of what is happening here. Friday we got a breakout from this squeeze, these bands, pretty tight, less than 4 percent wide. So, we get a breakout from the squeeze but it didn’t hold. The stock fell back kind of into the base, it is a long multi-week base here it fell back in. Today, it is still in the base.

This isn’t really a stock that you want to be buying right now. But you do want to set an alert at about 190.00 or so; let’s just do it for a week, and that works for me. It is a little above 190.00. If the stock starts trading above 190.00, that is like $2.00 from where it is right now, then you really start looking hard at this thing; you buy it up here. It is not quite above Friday’s intraday high of 191.78. But, you get it just a little bit above 190.00, you haven’t given up that much in potential profit in order to have the convenience, I guess, of waiting to see if the stock is going to break out.

The trend is really strong as death. This has been moving up it seems like forever. So I would want to buy this stock, but I want to wait and see if it is going to clear 190.00 and then ultimately get to a new high, which would be above this 191.78, so we will call it 192.00, that would be another deal. That is how I would trade Align Tech ( NASDAQ:ALGN ). Just wait for the stock to give you a little breakout above 190.00, and that is when you take the stock. 

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