Another stock that's quickly moving within range of triggering a near-term breakout trade is 3D Systems (DDD - Get Report), which manufactures and sells 3D content-to-print solutions and 3D printing systems. This stock has been on fire during the last six months, with shares up sharply by 44%.
If you take a look at the chart for 3D Systems, you'll notice that this stock recently pulled back to its 200-day moving average at $30.34 a share and the stock stopped its slide and found buying interest. Since tagging its 200-day, shares of DDD have started to bounce higher to its current price around $35 a share. That bounce is quickly pushing shares of DDD within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in DDD if it manages to break out above its 50-day moving average at $35.36 a share and then once it clears more near-term overhead resistance levels at $36.54 to $37.85 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 5.11 million shares. If that breakout triggers soon, then DDD will set up to re-test or possibly take out its next major overhead resistance levels at $42 to $44 a share. Any high-volume move above $44 will then put $45.63 to $47.99 into range for shares of DDD.Traders can look to buy DDD off any weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $34 to $33.50 a share. One could also buy DDD off strength once it clears those breakout levels with volume and then simply use a stop that sits right below its 50-day at $35.36 a share. This stock is hated on Wall Street, since the current short interest as a percentage of the float for DDD is very high at 31.3%. If that breakout triggers soon, then shares of DDD could easily rip significantly higher due to its high short interest.