Has 3D Systems Reached the Bottom? And Has the Music Stopped For Pandora?

NEW YORK (TheStreet) -- Good morning traders!

Today's top picks are 3D Systems  (DDD) and Pandora (P).

1.  First, let's look at 3D Systems. Through its subsidiaries, 3D Systems provides 3D printing design-to-manufacturing solutions in the U.S., the Asia-Pacific region, Germany and other European countries.

3D traded positive on Monday, up 5.01% to $50.50 per share.

  • Monday's range: 47.91 - 50.85
  • 52-week range: 39.55 - 97.28
  • Monday's volume: 3,927,305
  • 3-month average volume: 5,188,640

3D looks good technically, as it has formed a tiny double bottom over the last couple weeks. Yesterday it formed a bullish engulfing signal. This needs to be confirmed today with positive trading and a close above the 20-day simple moving average. This is one of those trades where we are trying to catch the bottom, which at times can be risky.

3D has been in a downtrend since Jan. 6. Shares are down a whopping 48%.

Ouch!

But 3D reported positive earnings on April 29 and has traded positively since.  I would use the moving averages as resistance levels. The next overhead resistance is the 34-day exponential moving average at $53.54, the 50-day simple moving average at $57.78, and then the 200-day simple moving average at $64.07.

I would use these levels as targets, with my ultimate target being the 200-day simple moving average. That would be a +26% upswing move. 

3D is in a solid downtrend, so be careful and set your stops appropriately. Stay long until you see a confirmed sell signal.

2.  Next up is Pandora Media, which provides Internet radio services in the U.S. The company allows listeners to create up to 100 personalized stations to access free music and comedy. Plus the company offers Pandora One, a paid subscription service to listeners. It is also involved in the sale of displays, audio advertising and video advertising products for delivery on computer, mobile and other connected device platforms.

On Monday, Pandora traded down, closing down 8.94% to $22.52 per share.

  • Monday's range: 22.48 - 24.99
  • 52-week range: 13.80 - 40.44
  • Monday's volume: 14,771,470
  • 3-month average volume: 10,412,400

Pandora is continuing to be a good short. It's down 44% from its 52-week high of $40.44. Pandora is loved by its listeners, but hated in the investment community.  

Technically and fundamentally, this stock is doomed.

Yesterday was a painful day for Pandora, but a great day for short sellers. The stock chart formed a bearish engulfing/piercing signal. Plus, volume is waxing and gaining strength to the downside.

There is a gap that remains unfilled all the way back to September 2013. The gap support levels are $21.38 to $23.31.

Short Pandora on continued negative strength.

Good luck traders!

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At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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