ALGN ends the day indecisive
Align Technology Inc. (ALGN) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ALGN ended the week -7.25% lower at 327.50 after surging $14.64 (4.68%) today on high volume, strongly outperforming the Nasdaq 100 (2.77%). This is the biggest single-day gain in over. The last time we've seen such an unusually strong single-day gain on September 14th, ALGN actually lost -3.02% on the following trading day. Trading up to $9.01 lower after the open, Align Technology managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ALGN as at Oct 12, 2018):
Friday's trading range has been $12.06 (3.7%), that's slightly below the last trading month's daily average range of $12.60. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ALGN.
Three candlestick patterns are matching today's price action, the Bullish Spinning Top, the Morning Doji Star and the Takuri Line which are known as bullish patterns.
Prices are trading close to the key technical resistance level at 332.01 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 367.57.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Morning Doji Star" stand out. Its common bullish interpretation has been confirmed for Align Technology. Out of 1 times, ALGN closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 100.00% with an average market move of 0.51%.