I last reviewed the charts of Align Technology (ALGN) on July 17, writing that "Traders could go long ALGN or add to longs on ALGN on weakness near the $360 area. Risk to $330. The $425 area is my nearest price target."
ALGN has broken below $330 so traders should be stopped out of longs now.
Let's check the charts again to see if this is the start of further declines in the weeks ahead.
In the daily bar chart of ALGN, below, I can see that the shares have turned down below the 50-day moving average line and the slower-to-react 200-day moving average line is not all that far below the price action now.
The On-Balance-Volume (OBV) line has been weak since February and that tells me that sellers of ALGN have been more aggressive than buyers for several months now. The Moving Average Convergence Divergence (MACD) oscillator is now crossing below the zero line for an outright sell signal.



