3D Systems Corporation (NYSE: DDD)

3D Systems Corporation, through its subsidiaries, develops, manufactures and markets 3D printers, print materials, on-demand custom parts services, and 3D authoring solutions for professionals and consumers. The company’s primary print engines comprise stereolithography, selective laser sintering, multi-jet modeling, film transfer imaging, selective laser melting, and plastic jet printers, as well as ZPrinters.

Its 3D printers convert data input from computer aided design (CAD) software or 3D scanning and sculpting devices to produce physical objects from engineered plastic, metal, and composite print materials. The company also provides its customers with 3D authoring tools for digital imaging and design; blends, markets, sells, and distributes various consumables, engineered plastics, nylon and metal materials, and composites; and offers various software tools, as well as pre-sale and post-sale services, including applications development, installation, warranty, and maintenance.

Please take a look at the 1-year chart of DDD (3D Systems Corporation) below with my added notations:

1-year chart of DDD (3D Systems Corporation)

After finally breaking through the $50 level at the end of August, DDD almost doubled to $98 in January. Since then, the stock has pulled back to support at $85, which was also the November high. A break below $85 will most likely lead to significantly more selling, while if that level holds, the stock should run to new 52-week highs.

The Tale of the Tape: DDD has a key level of support at $85. A long trade could be made at that level with a stop placed below. However, if the stock were to break that level traders might want to look to get short on the stock.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT