ALGN runs into sellers again around 340.28
Align Technology Inc. (ALGN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ALGN finished Wednesday at 329.86 losing $5.38 (-1.6%), but still slightly outperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. 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 Sep 16, 2020):
Wednesday's trading range has been $11.54 (3.41%), that's slightly below the last trading month's daily average range of $11.65. 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 higher than usual for ALGN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 321.49 (S1). After having been unable to move above 339.73 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 340.28. The last time this happened on September 11th, ALGN actually gained 1.83% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 310.47.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Align Technology. Out of 436 times, ALGN closed higher 55.50% 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 62.61% with an average market move of 2.02%.