ALGN closes higher for the 3rd day in a row
Align Technology Inc. (ALGN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ALGN finished Thursday at 191.64 gaining $7.96 (4.33%), significantly underperforming the Nasdaq 100 (5.72%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ALGN as at Mar 26, 2020):
Thursday's trading range has been $17.97 (9.83%), that's slightly above the last trading month's daily average range of $17.09. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALGN.
The stock managed to close above the 20-day moving average at 191.45 for the first time since February 20th. Unable to break through the key technical resistance level at 195.97 (R1), the market closed below it after spiking up to 200.47 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 13th, ALGN lost -17.44% on the following trading day.
Although Align Technology is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Align Technology. Out of 161 times, ALGN closed higher 54.04% 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 10 trading days, showing a win rate of 59.01% with an average market move of 1.91%.