- ALGN has had repeatedly good and I believe last week's crash is an opportunity given the situation was largely driven by the broader market
- Entering trade because ALGN current price is nicely positioned above the 200MA line and is one of the few stocks that has managed to be in this position despite last weeks crash.
- RSI shows the price exiting the oversold area
Anyway earnings release is after the close. I have just entered again with double the units. My trade plan still will stay the same - Short term trade with a close on the day itself or a day after (Friday)
But Align's outlook for the fourth quarter lagged. Align expects to earn $1.10-$1.15 per share on $505 million to $515 million in sales. Analysts called for earnings of $1.32 a share and $544 million in sales.
The observation I'm seeing here is that for stocks with a sold earning record and strong business fundamentals. Good earns are almost a given so small cracks that might derive from future earnings or even a slight dip in current will cause it to break.
In reflection, with the information assumptions I had. I think I would have still entered this stock.