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This Medical Stock Has Been Hammered -- Here's The Trade

ByInTheMoneyStocks.com
AuthorNicholas Santiago
Published 08/21/2019, 04:26 PM
Updated 05/14/2017, 06:45 AM

Late last month, Align Technology (NASDAQ:ALGN) was hammered lower after reporting earnings that disappointed the street. The stock actually peaked out in September 2018 at $398.87 a share. It then made a lower high on the daily chart on May 15, 2019 at $334.64 a share.

Currently, the stock is trading at $176.00 a share, but it remains in a weak technical position on the charts. The stock is now trading below its 200-week moving average which is a near term negative for the stock price. While the stock is currently oversold it is still signaling further downside before a solid bottom is formed. The one level that has caught my eye in the stock is around the $138.00 area. This level is where the stock actually broke out in May 2017. As you all know by now, I really like pullbacks into past break-out levels as institutions will generally support the equity around this area. Please note, ALGN stock generally trades less than 1 million shares a day, so it is always vulnerable to overshoot levels.

Align Technology

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I see the heavy volume with relatively no movement you're referring to but I'd have to say my entry point I see is between the $138-144 mark. Scaled positioning starting at the 144 mark and incremental purchases there after down to 138 may be a play but that's technical based. A swift sell off and that 138 base could be a blood bath passed 115 IMHO.
Hello: You have any good ideas on a small cap stock to watch. Thank you! Greg
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