Who Doesn’t Want DDD’s
- Posted by Greg Harmon
- on April 11th, 2013
Ok, get your head out of the gutter. I am talking about 3D Systems, $DDD, the 3D printer. This stock has been a popular trading vehicle no matter which side you are on. With nearly 30% short interest it can be subject to big swings. The Fundamental picture will not get any further clarity until they report earnings at the end of the month so it is even more important to look at the underlying technical currents when trading this stock. It has been a doozy, completing a AB=CD pattern in late January, but with a twist. The CD leg was a 127% extension of the AB leg. And now it is doing it again. This time the CD leg with a 127% extension measures to 61.40. The Moving Average Convergence Divergence indicator (MACD) signal line
3D Systems, $DDD
has been moving off of the low since March 18 and has a long way to go to the previous high. The Relative Strength Index (RSI) also bottomed then and is rising with a lot of room and just now moving into bullish territory. And the accumulation/distribution bottomed at the same time and is moving sideways. The cross of the 50 and 100 day Simple Moving Averages (SMA) just overhead is the last major stumbling block before it can continue higher and complete the 3 Drives pattern at D. If you still need some convincing a trader today bought the May 39 Calls and sold the May 27/21 Put Spread, a bullish Risk Reversal, 1968 times for 85 cents. This trader expects the price to continue to rise through May Expiry.
Join the Dragonfly Capital Views Premium Membership
Its Time For a Sale at Dragonfly Capital!
And what better time than during March Madness. The Annual subscription rate for the Premium Dragonfly Capital Views Service, will be cut by 20% to $600. That is nearly 45% off of the monthly rate for a year! Follow this link to start your subscription, with free 7 day trial, today.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through March 2013 Expiry
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 since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Premium Earnings 8-30-16: H&R Block and Bob Evans
- Rising Equities and Bonds, Like Dogs and Cats Living Together
- Seeking Fortune in Fortune Brands
- Premium Earnings 8-29-16: Abercrombie & Fitch and DSW
- Top Trade Ideas for the Week August 29, 2016: Bonus Idea
- Top Trade Ideas for the Week of August 29, 2016: The Rest
- Top Trade Ideas for the Week of August 29, 2016: The Rest Premium
- Top Trade Ideas for the Week of August 29, 2016: The Best
- SPY Trends and Influencers August 27, 2016
- Macro Week in Review/Preview August 26, 2016