Back on July 27 I reviewed the charts and indicators of Align Technology (ALGN) , writing that "I have no knowledge of what ALGN is going to announce to shareholders this evening, but its charts have been showing improvement since early May. Aggressive traders could probe the long side of ALGN ahead of the numbers only if they can afford to risk down to $225."
Prices rallied into the middle of August and then slowly declined to new lows in November. Shares of ALGN gapped sharply higher today (Thursday) on the heels of their earnings beat. Let's check out the charts again.
In this daily bar chart of ALGN, below, I can see how prices recovered the past two months. ALGN was already trading above the 200-day moving average line before today's huge gap higher. Prices have been trading above the rising 50-day moving average line since the middle of December.
The daily On-Balance-Volume (OBV) line has moved higher in the past two months as traders have become more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish move above the zero line.



