Tuesday, August 25, 2015
SSYS Stratasys Weekly and Daily Charts Falling Wedges Oversold Positive Divergence
SSYS is a knife-catch long play. The green lines show universal positive divergence across all indicators on both charts. In addition, the indicators are coming off the oversold levels and the falling wedge patterns are also bullish. Comically, the death cross occurs (50-day MA stabbing down through the 200-day MA). Typically, stocks and indexes do bounce when a death cross occurs although for the weeks and months ahead the death cross does forecast weakness which will occur.
Price is extended below the moving averages requiring a mean reversion higher. SSYS may be seeing the light at the end of the tunnel but sometimes that is the oncoming train. Keystone bot it during the opening flush move in markets yesterday morning. SSYS ran higher so the profits were taken as a day trade. Then Keystone reentered in the afternoon and has a long position in place and may take profits or let it ride today.
SSYS is viewed as the best in breed in the 3-D printer space. DDD, VJET and XONE are the other players. DDD is set up the same way as SSYS above. VJET and XONE charts are also similar but SSYS and DDD appear better. Do your own due diligence and look at the fundamentals. Perhaps the 3-D printing space will feel some love going forward after a two-year drubbing. That may be a place to look for long opportunities. 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.