DDD 3D Systems – Former Market Darling Threatening To Accelerate Downtrend

by Olivier on October 7, 2014

A former market darling, 3D printing stock DDD – 3D Systems, has formed a bearish descending triangle that is threatening to break to the downside. So far the stock hasn’t experienced any kind of notable volume increase. That could be indicative of market participants being in denial during a strong downtrend. A long-term top is now clearly in place. Odds are once we see a volume increase it will be on down days. A decisive break of the lower boundary of the descending triangle could lead to a downtrend acceleration. Although bounces can happen anytime overall the stock looks like sellers are now firmly in control. I initiated a small short position.

Click on DDD chart to enlarge:

3D Printing Stocks – Sector Overview Chart on my public list. The chart contains the following companies: DDD – 3D Systems, SSYS – Stratasys, PRLB – Proto Labs, XONE – ExOne, ONVO – Organovo, VJET – Voxeljet

The most likely target area on a decisive move to the downside would be the 25 – 30$ price area. A simple horizontal support resistance analysis and a measured move derived from the descending triangle both suggest this price target area.

Good lows are made by sellers, not buyers. – Kevin Marder

Twitter: https://twitter.com/tischendorf

Investing in your education always pays. Learn how to read chart patterns like a pro! Tischendorf Letter Premium: https://members.tischendorf.com

Previous post:

Next post: