ALGN closes lower for the 2nd day in a row
Align Technology Inc. (ALGN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ALGN ended the month 7.06% higher at 293.82 after losing $2.31 (-0.78%) today, strongly underperforming the Nasdaq 100 (1.78%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ALGN as at Jul 31, 2020):
Friday's trading range has been $8.86 (2.98%), that's slightly below the last trading month's daily average range of $11.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALGN.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern. The last time a Last Engulfing Bottom Pattern showed up on March 23rd, ALGN gained 20.01% on the following trading day.
After having been unable to move lower than 289.73 in the previous session, the share found buyers again around the same price level today at 288.74.
Though Align Technology is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Align Technology. Out of 37 times, ALGN closed higher 56.76% 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 75.68% with an average market move of 3.70%.