NEW YORK (TheStreet) -- Good morning traders!
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%.
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.