Monday, August 5, 2013

SSYS Stratasys and DDD 3D Systems Weekly and Daily Charts Channels


3-D printing is revolutionizing the world. Imagine that if you needed a tool, or other product, you would simply walk over to your printer and turn it on and in a short time you are holding the item in your hand. No need to run to WMT or other stores. It may be the most revolutionary invention in modern times. SSYS and DDD are the two darlings in the space and their charts are on the same track, up. DD has jumped from 10 to 50, five-fold, in one and one-half years. No one can be faulted for wanting to buy either of these stocks now as a long term buy and hold (LTBH) if willing to be a long-term investor. Both of these stocks may be bought out over time perhaps by companies like AAPL or IBM. Both stocks need to take a rest for a while but considering that the 3-D cat is out of the bag, a solid support for these stocks is likely in place for the considerable future. The charts are negatively diverged but price will likely favor sideways movement more than down since everyone and his brother will want to buy any pull backs.

In a broader market sell off, it would be nice if these two winners would drop to allow a nicer entry. There is a juicy gap (green circle) for SSYS at 65 which would be a great place to back up the truck and jump in with both feet, however, it may never come down there again.  SSYS and DDD are easy calls for long term investors since they will choose a prudent path of adding X amount of stock month after month for the foreseeable future. It would not be surprising to see the stocks up another five times over the next couple years. However, considering the negative divergence, and that the broad indexes are likely ready to pull back, a lower entry price may be provided. If price falls under the 20-week MA that would be a tempting buy point. Lots of traders will be chasing these stocks over the coming years and they will likely develop into momo darlings. 3-D printing is revolutionary, like the invention of the telephone, television and computer. No one could be faulted for buying these stocks at current prices or lower. It is hard to ever see a significant downside for these stocks, only upside over the months and years ahead. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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