Align Technology (NASDAQ: ALGN) continues to maintain a bullish Elliott Wave structure despite the sharp decline from its 2021 peak. The monthly chart suggests that the stock completed a major wave III advance near the 700 area before entering a large corrective phase. While the correction has lasted several years, the larger bullish cycle remains intact. Following the wave III peak, ALGN began a complex correction that appears to be unfolding as a double three structure. The decline has already completed wave ((W)) and a connecting wave ((X)), while the final leg, wave ((Y)), remains in progress.
The current Elliott Wave count suggests that wave IV is approaching an important support area. The projected blue box between 106.86 and 61.10 represents the 0.618–1.000 Fibonacci extension zone, which is a region where corrective structures often complete and buyers return. This area is considered a high-probability reversal zone. As the stock approaches this support region, we will be looking for signs that the correction is ending and a new bullish cycle is beginning.
From an Elliott Wave perspective, the ongoing decline appears to be the final phase of the larger wave IV correction. Once wave IV completes, the stock should begin wave V and resume the long-term uptrend. The projected path on the chart suggests a strong rally from the blue box area. We expect wave V to eventually break above the 2021 high and establish new all-time highs. This outlook aligns with the broader bullish structure that has been in place since the 2008 low.
As long as price remains above the long-term invalidation level at 4.88, the larger bullish count remains valid. We do not recommend selling and continue to favor buying pullbacks once the current correction reaches completion.
Conclusion
Align Technology remains in a long-term bullish Elliott Wave cycle despite the ongoing correction. Wave IV appears to be approaching completion within the 106.86–61.10 blue box support area. Once the correction ends, we expect wave V to begin and eventually push the stock to new all-time highs.