3D Printers Are Ready to Bounce
- Posted by Greg Harmon
- on January 29th, 2013
When I first heard about 3D printers my mind moved from being able to see a crappy 3D representation on a piece of paper, to wondering how the printer would be able to fold the paper to make it 3D, to wondering if I would need a holographic viewing device (that would not be very useful) to the final realization that these were not really printers but machines to make guns out of resin. All through this journey (sorry my wife has mew watching the Bachelor) the stocks of these companies had been moving higher and then started to pullback. It is not a given that they will copy their 2012 performance but there are 3 stocks showing 3 different reasons that they may be ready for a bounce.
3D Systems, $DDD
3D Systems, $DDD, is the largest with over $3 billion market cap and the most popular. Looking at its chart, it got so heated that it became technically overbought (its Relative Strength Index moved over 70). In fact the RSI reached all the way to the mid 80s, a good spot to look for a correction and that it did. Dropping 20% in two days before the Median Line of the Andrew’s Pitchfork attracted it back higher. Notice that the RSI bounce at 50 as well, staying bullish. It may continue to fall back to the 50 day Simple Moving Average (the blue line) which has been important support many times in the past but, with over 20% short interest if it continues higher Wednesday it is time to party on!
Proto Labs, $PRLB
Proto Labs, $PRLB, spent most of its short life in a channel between 28 and 40 before moving above it 2 weeks ago. The break higher got the momentum players ramped up and the RSI went to overbought on this name too. But since then it has pulled back to retest the break out level at 40 and held for 2 days now. The RSI is looking better and the and should the retest continue to hold and then turn traders will be looking for a move back higher with a target of 52 from that channel break.
Despite being from the mid west Stratasys, $SSYS, shows an affinity for shellfish. Since December it has been building a Bearish Crab pattern (I know it does not look like a crab, but the constellations don’t look like animals either). The move through the Potential Reversal Zone (PRZ) and then back below confirmed and gave a target of 75.81 for an initial move. It is nearly there and showed some life on reaching the 50 day SMA. Another up day and this one may be out of the doghouse as well.
Everyone of these could just ignore what the charts are saying and continue lower. But each of these stocks is giving a good indication of an area to trade against if you want to join the party.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Starbuck Earnings Trade Ideas for Less Than a Pumpkin Spice Latte
- Premium Earnings 10-30-14
- How to Trade Baidu for the Earnings Report
- Premium Earnings 10-29-14
- SPYing Above the Treetops
- Earnings Trade Ideas for Facebook
- Premium Earnings 10-28-14
- The Clear View on the SPY
- Trade Ideas for Buffalo Wild Wings Earnings Report
- Premium Earnings 10-27-14