Align Tech Daily Chart.
Shares of Align Technology Inc (NASDAQ:) are moving well today. The stock’s 3.5% gain places it in the S&P 500 Indexes top 5 gainers list. This powerful move extends the stock’s lift off major support to 14%. We believe ALGN is setting up well for a fresh rally leg.
Support near the November highs has held up well this year. It has provided support at the January and multi-week March lows. The November peak was reached a few weeks after the stock’s blowout Q3 drove it 35% higher. ALGN entered extremely overbought territory at the November highs. Currently shares are well below neutral (daily MACD) despite remaining within 12% of February’s all time highs.
We consider ALGN a fairly low-risk buy near current levels. On the downside, a close back below $544 would violate the April lows, sending a clear warning sign that more consolidation is ahead.
Earnings are due April 28.
We highlighted ALGN back in mid July: https://twitter.com/GarySMorrow/status/1283417136346660864?s=20. The stock is up 83% since the July 15 close.
Note: We have no position.
You can read Gary S. Morrow’s original post here.
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