What is 3D Systems (DDD) printing on this chart? A trading top. (April 14, 2016)
I want to look at 3D Systems ( NYSE:DDD ), they’re one of those 3D printers. I think this is printing out right now, kind of a short-term trading top. Here’s the deal: The stock got an upgrade by Bank of America. Where the heck were they at $7.00? So the company got an upgrade by Bank of America. Cramer is also bullish. There’s a lot of bullish stuff on here. The stock gapped up pretty substantially at the open, almost 10 percent, and it held the gap. BUT, it didn’t really hold it by much. You could see first thing in the morning a big spurt of buying here. And then despite other positive news throughout the day the stock has continued to fall.
So here’s the deal: The low is right around $18.00, we’ll call it 18.10, whatever. The low is $18.00. The stock is still in an uptrend, a very, very strong uptrend. But you don’t want to buy a stock that’s up 10 percent, and actually I think probably down 10 percent, 8 percent from it’s intraday high. So this is a stock that with such volume here, it looks to me like it’s ripe for a pullback. You look at the last big volume spike, the stock pulled back the next day. Ultimately it moved higher, it’s up here like this, just continuing to move up after this big, massive volume spike. Can you envision that? Or do you think maybe one possible scenario would be for it to move down, and then at that point we’ll see where the rubber meets the road?
Maybe this uptrend continues, but maybe this is the last gasp. The Bank of America upgraded so it could get it’s clients out of the stock at a discount, and now more profit taking ensues. I would be careful of this, there’s no way I’d buy it. I wouldn’t really be interested in shorting it. But I’ll tell you this, if you’re long this puppy, seriously, don’t give this much room. Give it about 29 cents. If it falls below 18.00, get out. And even then what you’re really giving up is about 28 or 29 cents. This is just a stock that has a VERY high likelihood of falling further. Don’t ride it down.
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