07.31.2025 / 
ALGN
Fundamentals. Suspected of possible violations of federal securities laws on the back of a negative earnings report.
Technical Analysis.
Daily Chart: Downtrend. Level 127.88 formed by the trend break in March 2020 is ahead.
Premarket: Gap down on increased volume. We mark the trend break level in the premarket at 140.0.
Trading Session: The price held the 140.0 level twice during the first hour after the opening of the trading session. Note the clear hold in the first case and the hold with false breakouts in the second. Also note that each subsequent pullback was smaller than the previous one. We are considering a short trade to continue the downward movement in case of the breakdown and hold of the 140.0 level.
Trading scenario: breakdown with retest (tightening with retest) of level 140.0
Entry: 139.67 after breakdown and hold the price below the level.
Stop: 140.11 we hide it above the tail of the retest candle.
Exit: We observe the strong downtrend. Cover the part of the position at 132.08 when the structure of the downtrend is broken (RR 1/17), after the downtrend resumes, hold the rest of the position until level 127.88 (1/25).
Risk Rewards: 1/21 (max. 1/25)
P.S. In order to understand the idea of the Stock Of The Day analysis, please read the following information.
ALGN Fundamentals. Suspected of possible violations of federal securities laws on the back of a negative earnings report.
Technical Analysis.
Daily Chart: Downtrend. Level 127.88 formed by the trend break in March 2020 is ahead.
Premarket: Gap down on increased volume. We mark the trend break level in the premarket at 140.0.
Trading Session: The price held the 140.0 level twice during the first hour after the opening of the trading session. Note the clear hold in the first case and the hold with false breakouts in the second. Also note that each subsequent pullback was smaller than the previous one. We are considering a short trade to continue the downward movement in case of the breakdown and hold of the 140.0 level.
Trading scenario: breakdown with retest (tightening with retest) of level 140.0
Entry: 139.67 after breakdown and hold the price below the level.
Stop: 140.11 we hide it above the tail of the retest candle.
Exit: We observe the strong downtrend. Cover the part of the position at 132.08 when the structure of the downtrend is broken (RR 1/17), after the downtrend resumes, hold the rest of the position until level 127.88 (1/25).
Risk Rewards: 1/21 (max. 1/25)
P.S. In order to understand the idea of the Stock Of The Day analysis, please read the following information.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Если у вас появились вопросы по данному разбору, у вас есть альтернативное мнение или вы хотите поделиться собственной акцией дня - добро пожаловать в Telegram t.me/stock_of_the_day_channel
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.