I was recently interviewed by Real Vision (video below) where I describe why I like DDD’s long-term prospects. In this post, I look at the current technical condition.
On April 30th, 2 days before 3D Systems reported earnings, I sat with Real Vision in their studio in NY and told them why I was recommending this stock.
The 3D printing trend is in infancy. Presently, the military, NASA, Aviation companies, medical facilities, artists, homebuilders and even Amazon use 3d technology for a myriad of reasons.
Amazon is investigating its use for imaging, so when someone buys clothes, they can be measured accurately.
Yet to hit the retail space, that time will come…
DDD fell below 10.00 briefly after earnings and quickly recaptured that important basing level.
Then, right around 10.05, something rare and divine happened. The 50 daily moving average crossed above the 200 DMA to create a “golden cross.”
Interestingly, the price was trading well below. However, as golden crosses are quite bullish, DDD, over the course of 4 trading days, ran up 28% to not only meet the converging MAs, but also to clear them.
And on huge volume.
DDD literally went from a bearish phase to a strong bullish phase in a matter of days.
Should the stock hold above 11.25-11.30, or where the MAs align, the stock can easily see 14.00 as a good target area.
Then, I would expect some consolidation between 13.00 and 14.00. Should DDD then clear 14.00, looking out, the price could get to 17.00, then 20.00 with 23.70 the 2017 high.
Essentially, this move up from 10.00 to nearly 13.00 in a matter of days suggests to me that I’m not the only one who likes this stock.
And, as this powerful megatrend becomes more mainstream, which I have no doubt it will in time, note that this stock peaked in price in March 2014 at 97.28.
S&P 500 (SPY) Confirmed bullish phase on this impressive albeit low volume rally. Bias now turns from neutral to friendly to friendly. The tinderbox of issues in the geopolitical world could ignite at any time, so 267-268 is max risk here.
Russell 2000 (IWM) 160.63 all -time high. Today’s high 160.17. 158 pivotal support which if fails, would give bears a low risk opportunity to short against the highs. Should it clear ATH’s, a $10 move up is not out of the question
Dow (DIA) Who can forget Terror at 25,000 in the Dow? Not me-so that’s the resistance (250) with now 245 support to hold
Nasdaq (QQQ) Until this fills the gap to 170.93 left on 3/17, I would go gung ho long. However, 168 is a great place to use a stop loss or reversal