Tomorrow after the market closes Align Technology (ALGN) reports their earning numbers. Should you look at buying or shorting the stock? This stock popped up the other day when I was looking at growth stocks that fit my criteria. You can see how I search for growth stocks from this post: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
Let’s look at the charts.
Align Technology, Buy or Sell?
The other day when I was searching for growth stocks to see which ones fit my trading style I saw Align Technology (ALGN) pop up. Then today I heard they report tomorrow 1/29/2019. I was planning on getting in today but forgot so I have a limit order to get in tomorrow around $222.00. (All views expressed are my own opinion and should not be considered financial advice)
If you look at a couple of stocks listed there is Antero Midstream Partners (AM). I currently own them as well. This is the new way I am getting into stocks the majority of the time. I’ve mentioned before how I used to hop in almost any stock if it fit my trade setup. But with stocks fundamentals do matter and the technicals only tell a part of the story. It is not like Forex or futures. So I’ve learned from that mistake to try and not enter into too many crappy stocks just because they fit my trade setup.
The 1 Hour Chart
I try to use the 1-hour time frame for stocks when I can because it obviously moves quicker than the daily chart. That is what we will be using.
So here is the 1-hour chart. The trade setup used will be the Lightning Trade. For the entry, I am looking at around $222. The exit will be around $304. Even if the stock moves lower the exit will not move.
That does not mean I will wait until $304 to get hit. It just means there are no other levels to move my exit to. This is the last exit level area for the Lightning Trade setup. So this is what I call a “free trade” if you get in now. Or really anytime before $304.
If the price does go lower then the next entry area will be around $192 which is the opposite 127.2% Fibonacci extension level. After that, the next entry would be around $168 and then $140.
So the first entry will be a small one and I’ll look to get in if the price goes lower.
If price takes off with me then great! A good small winner. If not then I will be waiting for it at lower levels.
Recap
I am getting in on ALGN around $222. The exit will be around $304. If price goes lower then I’ll look to get in around $192, $168, and $140.
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