A little over a month ago, I penned some bullish thoughts on 3D printer stock 3D Systems Corporation (NYSE:DDD). The gist of my comments was, after an excessive pullback (following an excessive runup), DDD was due for a bounce.... and as such was worth taking a swing on. We even saw a modest rally in the meantime, though nothing overly-exciting. If my trading instincts are right though, I suspect the heat's about to get turned up again, making this name worth a renewed look.
Just for perspective, DDD closed at $29.16 on the 19th, when I posted that last look. The current price of $34.49 is already 16.5% higher than it was then, so I could walk away from stock 3D Systems Corporation right now and not have any complaints. But, I've got a feeling there's a lot more upside left to go.
A big part of the reason I'm still bullish on 3D Systems is the way the key 200-day moving average line (green) has acted as a floor - and a springboard - twice in the meantime... once in early April, and once again just yesterday. The DDD bulls seem to have a drawn a line in the sand, and we shouldn't ignore that.
On the flipside, DDD has met a ceiling during this rebound process. In fact, it's met it twice - the 50-day moving average line (purple), where shares touched and pulled back in mid-April, and where the rally was capped just yesterday. In the same way the bulls have drawn a line in the sand, the bears have too. Still, we've seen a string of higher highs and higher lows since then, and that bigger undertow is still intact. You can also see how the 'up' days from 3D Systems have been on higher than average volume, while the 'down' days have been on weak and/or falling volume.
But 3D Systems Corporation shares aren't above the 50-day line yet? Take a closer look. As of today, DDD has indeed moved above the 50-day moving average line... a key technical catalyst. The current price of $34.49 is above the 50-day line at $33.98. This time though (unlike the mid-April move above the 50-day average line), it looks like this cross is going to stick. And now that it's above the hurdle, there's little left to hold the rally back.
No real fanfare needed here.... 3D Systems has cleared a hurdle, and that's going to make it much easier for the bulls to run.
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