This Medical Stock Has Been Hammered -- Here's The Trade
InTheMoneyStocks.com | Aug 21, 2019 04:26PM ET
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.
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