When I first heard about 3D Systems (DDD) I had no idea what they meant about 3D printing. When I actually saw an example of it, I was fascinated. It's amazing what they are doing with these printers.
So, I took another look at the stock. I thought that with the recent pullback, there might be an opportunity for a decent entry on the buy side. I applied my technical tools to the current daily chart and found a few things.
3D Systems (DDD)
Source: Dynamic Trader
View Chart »View in New Window »
First, the current pattern still shows upside potential in this stock from the June 24 low. Target 1 from that low comes in at $54.90. Target 2 from that same low comes in at $58.67. I like the fact that price is currently above the 200-day simple moving average and, as of Thursday, above the 50-day simple moving average also. Besides this, the hold above the June 24 low tells me to watch for a resumption of the rally in this one.
I found two Fibonacci price clusters of support that came in above this key low. The first one came in at the $43.28-44.58 area. The second one came in at the $41.48-42.14 area. So far, the recent low was made on top of the first support decision that included a few 100% projections, aka measured moves, along with a 0.786 retracement and a 1.272 extension.
I have seen buy triggers against this first zone on both the 15-minute and the 30-minute charts. My maximum risk on this trade would be below the June low at $41.05, though I may just place a stop below the Aug. 7 low.
Bottom line, I would take buy triggers in this one as long as one of the two zones is not taken out on the downside. If those are taken out instead, then I'm wrong the trade. Also note that there are a couple of minor targets off the Aug. 7 low. They come in at $53.34 and $55.75. If the trade does start playing out for me, I will trail up a stop as it goes.
At the time of publication, the author was long DDD.