Do Align Technology Shares Look Straight or Crooked?
Let's consult the x-rays to see how the stock is lining up.
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Two of my granddaughters are very aware of what Align Technology ALGN does. Trips to the dentist and orthodontist and some peer pressure will do that. Let's check out the charts and indicators of ALGN to see if the basing continues or further weakness is the course of treatment.
In the daily bar chart of ALGN, below, I can see that the shares have traded in a down and up and down pattern. Prices currently trade above the declining 50-day moving average line and below the declining 200-day line. The trading volume expanded on the rally and on the decline.
The On-Balance-Volume (OBV) line has drifted lower since March. The Moving Average Convergence Divergence (MACD) oscillator has improved since late May but is still below the zero line.
In the weekly Japanese candlestick chart of ALGN, below, I can see that the shares have made lower highs over the past three years. ALGN has also made two roughly equal lows — one in October 2022 and the other in October 2023. The trading volume pattern is mixed but the slope of the declining 40-week moving average line is easy to read.
The weekly OBV line shows weakness since March. The MACD oscillator is in a bearish alignment below the zero line.
In this daily Point and Figure chart of ALGN, below, I can see an upside price target of $299.
In this weekly Point and Figure chart of ALGN, below, I can see a potential downside price target in the $195 area. Are we looking at the same set of x-rays?
Bottom-line strategy: ALGN's charts and indicators are mixed — there is a chance for an upside bounce and there is a risk for a move to the downside. Let's brush and floss and water pick and come back to the charts in a few weeks. I suspect we could get a better buying opportunity.
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