Boston, MA, 04/23/2014 (usastockreport) – Align Technology, Inc. (NASDAQ:ALGN) witnessed a pullback in the last couple of days after hitting an intra-day low of $48.46 on 14th April 2014. The stock rallied on the upside but over the last two trading session’sfaced very stiff resistance at the 50 day moving average. Even yesterday the stock tried to go higher, but as soon as it hit the resistance at $53.30, we saw a massive sell off and the stock closed at the lows of the day. This sell off was on the back of good volumes which confirms to us the resistance zone and makes us believe that the stock can go lower in the coming trading sessions.
The stochastic oscillator for the stock showed signs of recovery amidst the pullback but has now given a sell signal again because the resistance it has met at the 50 day moving average. The relative strength index for the stock is also showing signs of tapering and has turned weak. This proves to us that the inherent strength in the pullback is missing and we might witness follow up selling in the counter.
The weekly charts for Align Technology, Inc. (NASDAQ: ALGN) are in a strong uptrend and have taken very good support at the $49.32 which is also the 50 day week moving average for the stock. The stochastic oscillators for the stock are in the oversold zone, but aren’t showing any signs of recovery and we believe if the stock breaks down from the above mentioned support level we might see the stock fall towards $45 levels in the coming weeks. Similarly the relative strength of the stock is showing first signs of tapering and confirms our bearish stance.
(Figure): Daily chart for Align Technology, Inc. (NASDAQ:ALGN)
Latest Buzz: Analysts on the street believe that Align Technology, Inc. (NASDAQ:ALGN) is a candidate that can beat street estimates and consider that to be positive for the stock.