$ALGN has been in a “Go” trend since mid December ’23.
However, since hitting highs in February it has struggled to go higher and corrected against the trend. We saw a Go Counter Trend Correction Icon (red arrow) close to the top and this told us that price may have a hard time going higher in the short term. Indeed, as price fell from those highs, GoNoGo Trend painted a string of weaker aqua bars and GoNoGo Oscillator fell to test the zero line from above. We know that in a healthy “Go” trend momentum should stay at or above the zero line and so it was important to watch if the oscillator found support. As a tug of war between the buyers and sellers played out at this level, GoNoGo Oscillator rode the zero line causing the climbing grid of a Max GoNoGo Squeeze to build. This reflects price compression and we look for the break to ascertain price’s next likely direction. As strength returned in the price trend (strong blue bars) GoNoGo Oscillator has broken the Max GoNoGo Squeeze into positive territory and we see price breaking above horizontal resistance. With momentum now resurgent in the direction of the “Go” trend, we will look for price to consolidate at these new highs and potentially move higher still.
