ALGN pushes through key technical resistance level
Align Technology Inc. (ALGN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ALGN ended the week 19.67% higher at 243.74 after gaining $7.78 (3.3%) today, strongly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 243.74 marks the highest recorded closing price since February 21st. Closing above Thursday's high at 240.09, the market confirmed its breakout through the previous session high after trading up to $5.41 above it intraday.
Daily Candlestick Chart (ALGN as at May 22, 2020):
Friday's trading range has been $10.15 (4.28%), that's slightly below the last trading month's daily average range of $11.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALGN.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 238.68 (now S1), which is likely to act as support going forward. The last time this happened on Monday, ALGN actually lost -2.20% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 214.90.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Align Technology. Out of 577 times, ALGN closed higher 50.43% 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 55.81% with an average market move of 1.31%.