Lots look for some trades in the 3-D Printing stocks — XONE, SSYS, DDD. (October 12, 2013)
Discussed in this article: Stratasys Ltd. ( $SSYS )
I want to look at the 3-D printers, three companies, because they just look different; the charts look different and I think the possibilities for profits are different.
First of all Stratasys ( NASDAQ:SSYS ), this looks like it’s poised to move higher. None of these companies announce earnings until the very end to this month or the first of November, so there’s room for these stocks to move without a catalyst, and that’s the most important thing to keep in mind. Without a catalyst there’s still room for these things to move.
There’s support for Stratasys ( NASDAQ:SSYS ), there’s resistance for Stratasys ( NASDAQ:SSYS ), so you’ve got two ways to trade this depending on what the stock does. If the stock pulls back one more time, down to near this level below $100.00. Anywhere below $100.00 I think is a great opportunity to buy, as long as this last level holds up, I would say 90.00, so between $100.00 and $90.00 is a better buying opportunity. The closer to 90.00 it gets of course the better it is, but you need to keep a stop below $90.00, if this is a shorter-term trade for you. Look, if this is your time frame, don’t keep a stop just buy the stock and hopefully it’ll go to 200.00 before goes to 80.00, but that’s your defined risk right there.
Now 3D Systems ( NYSE:DDD ) looks a little bit different. This stock had a real washout a few days ago, it’s climbing now on lower volume. This is what I view to maybe have limited upside until earnings are announced, because you can see the stocks been moving higher, but the buying activity has been on the decline. I’m looking here at resistance say right around just a couple dollars of where it is right now. So this is one, it just needs to work more before you really do much, so it’s kind of a let’s watch.
And then finally ExOne ( NASDAQ:XONE ), if you’re a member you know that we’ve been kind of all over this, I loved to this stock, loved it here, loved it here, loved it all the way to here. I thought, wow, after this kind of breakout, high-volume, then the stock pulled back, nice amount of work here still to do, it’s all good, volatility squeeze maybe, Bollinger Bands were fairly tight, all we’ve got to do is wait for a breakout and we’re good to go.
Well that didn’t happen, but instead this support line got broken; you want to be selling this stock and once you’ve sold the stock and then it starts to bounce here, it’s just my trading style it doesn’t have to be yours, but I’m not really interested in buying it because there’s so much resistance here, so much supply from buyers who were kind of hoping that the stock would do this or maybe its institutions who are now looking at this saying, “You know what? I don’t want to be in this stock, my buddies are the ones that started dumping the stock here so I don’t want to play.” So they’re selling.
What I’m saying is, if you happen to buy here at the bottom then you’re saying, “Well, Dan doesn’t know what he’s talking about, because I got a really nice rate of return.” Okay, good for you. What I’m saying is that going forward, look, this stock could go up to, you know, $115.00 on Tuesday; but I’m analyzing the chart and looking at what I think is the kind of behavioral component to the market given the two stocks that I just covered, 3D Systems ( NYSE:DDD ) and Stratasys ( NASDAQ:SSYS ).
If you’re a theme investor and you want to invest in the 3D ( NYSE:DDD ) printing company, is this the one you’re going to look at based on the price activity? No, I think this stock has more possibilities if, and this is an if not a when, if the stock starts moving back up here. If the stock starts moving back up say above $65.00 then technically this is going to have a better chance of ultimately moving higher. Here I’m just looking at a stock that’s going to struggle so this is not a prediction, it’s an observation. Look at the 50-day moving average is starting to drift lower, the 200-day moving average, where is that? It’s in the future, because this stock hasn’t been trading 200-days, it started way back here.
So just be careful with ExOne ( NASDAQ:XONE ), that’s all I’m saying, if you’ve got a trade the stock keep a stop just below this area. My preference would be Stratasys ( NASDAQ:SSYS ) or 3D ( NYSE:DDD ); I think 3D ( NYSE:DDD ) has the most potential for an explosive move.