Sunday, February 8, 2015

XONE ExOne Daily Chart Oversold Falling Wedge Positive Divergence

XONE is a dangerous and speculative long trade set-up; a true knife-catch in every sense of the word. SSYS, DDD, VJET, XONE and HPQ are the key players in the 3-D space. Of course Hewlett is the big boy pushing everyone around as HPQ enters the 3-D printing space over the last year far later than everyone else. SSYS has been the darling of long traders in the space. Traders believe SSYS is the most likely player to get taken out by a rich buyer, perhaps HPQ. DDD was always solid in the space and paved the initial trail for 3-D printers; its clever ticker symbol DDD also adds notoriety. VJET and XONE are the lesser known 3-D companies and traders and analysts will slap them around now and then just for fun; they do not appear to be taken as seriously.

But SSYS drops bombshell news last week about lower guidance and was bludgeoned. DDD also. VJET and XONE actually held up through the news. Keystone has been trading these two on the long side, two trades with VJET and two with XONE, all winners but playing this game is very speculative and dangerous. Keystone bot back into XONE on Friday opening a new long position and currently has no position on VJET or the others.

Price is extended to the downside under the moving averages so a mean reversion higher is needed. The weekly chart is positively diverged as well although money flow has a shade of negative juice available very short term which may allow price to print in the apex of the green falling wedge pattern shown in the chart (13.2-13.9).

XONE will be interesting to watch this week. The chart above shows a rocket ship loaded with liquid hydrogen ready to launch into the stratosphere but when catching knives, sometime the ship blows up on the launch pad. The expectation is for a big rally spike higher from the possie d.

VJET remains attractive for a long play although the daily chart is favoring sideways action for the days ahead. The VJET weekly chart is encouraging so the expectation would be for a sideways to sideways higher move going forward. DDD is set up very similarly to XONE so that can be played long as well (remember these are speculative knife-catch, high-risk, high-reward plays). SSYS was bludgeoned -22% last week and down over -30% intraweek. Interestingly this is the stock chart that is not as attractive in the group; stay away from this one and allow time for the smoke to clear.

The 3-D sector may view the Statasys negative news as company-specific which likely bodes well for a recovery in the other plays. HPQ is a large behemoth and not a direct play on 3-D printing since the company is involved in so many other businesses. XONE and DDD are the most attractive long plays for speculative traders looking for a quick potential rocket launch. 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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