3D Systems (DDD) Stock Research: Creating an Impression of Depth

Michele Schneider

The megatrend that has gone from infancy to toddlerhood, 3-D technology and particularly 3D Systems (NYSE: DDD), recently came out with two news items.

First, on November 12th, 3D Systems Gentle Giant Studios, the industry’s global leader in photogrammetry for more than 20 years, announced the launch of two state-of-the-art mobile studios – Juggernaut I and Juggernaut II.

These studios eliminate the need to transport and set up equipment, saving production companies time and money without sacrificing quality.

Secondly, also on November 12th, DDD announced that Radhika Krishnan is now Senior VP and GM of their software workflow business.

Radhika brings experience and a proven ability to incorporate emerging technologies into solution offerings that deliver scale for the business and greater ease of use for the customer.

With these developments, and my bullish projection for the company as well as the whole 3D space in general, we turn to the stock chart.

3d systems ddd stock research analysis investing bullish chart_november 12

So, what does DDD’s chart show?

I show you two different charts.

The one on the left is the Daily chart.

There are four moving averages. The dark blue line is the 50 DMA, the yellow the 100 DMA, the green the 200 DMA and the cyan the 10 DMA.

The parallel lines you see denotes a channel that I put on the chart after the May lows were established. The lower channel line shows the price sitting right above it.

Although DDD sold off after the last earnings report, I still consider that an opportunity to begin to develop a long position.

One of the reasons, besides the huge potential of future growth as a technology, is technical.

On November 2nd, after making a new multi-month low, DDD rallied to create what we call a slingshot bottom.

However, timing and risk is everything.

The chart on the right is the 30-minute view equipped with floor trader pivots.

This is what we like to use to fine tune entries, along with our signature opening range rules.

Note that using our proprietary software, the chart also shows projected pivots for the following trading day.

With the FTP (gray lines) negatively stacked, we will wait for DDD to clear R1 on a 30-minute basis.

Then, a starter position makes sense with a risk to under the recent swing low.

Should DDD clear the 10 DMA and hold above it, that’s another place for a starter position or a potential add.

Should DDD clear the 200 DMA in green, you have yet another place to get long or add again.

Moving stops up when appropriate is our specialty.

I share these charts with you today, as DDD well out-performed the stock market indices.

At current levels, it could be a gift-horse, and maybe even a 3D one!

Trading Levels for key stock market ETFs:

S&P 500 (SPY)  – Broke the 200 DMA support line at 276.07 and the 50-WMA at 275.16. Now in an unconfirmed distribution phase. If it cannot get back over either of those areas, could see 270 then 268. Subscribers: Negative Pivots in all

Russell 2000 (IWM) – Under 150.50 more trouble coming. A move over 154 would be a relief

Dow (DIA)  – I told you not to trust the Dow-now under the 50 DMA (unconfirmed warning phase) and probably on the way to test the 200 DMA at 251 again

Nasdaq (QQQ) – Sliced through the 170 support and now has some at 160

KRE (Regional Banks) – 55.00 pivotal support held until the final sell-off. Now pivotal

SMH (Semiconductors)  – After the inside week I featured over the weekend, this failed 94 and sank nearly another 4%. 88.50 support

IYT (Transportation) – We had some hope here, but it failed 190 and still has a little support at 186.50-so will see what happens there

IBB (Biotechnology)  – The must hold spot is 106 failed-now resistance.

XRT (Retail) – Confirmed warning phase. 47.80 the 200 DMA

 

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The authors may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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