VJET Voxeljet Weekly Chart Positive Divergence Setting Up

The 3-D manufacturing stocks, DDD, SSYS, XONE and VJET catapulted to greatness but all are in various stages of decline. Quite a few pundits were and are touting SSYS as the best play in the space even as the stock drops from 132 in September to the 200-week MA support at 73 last week, a collapse of -45%. These 3-D stocks are heavily shorted which may indicate more pain ahead, or, create sharp short-covering rallies. Price likely needs to drop into the circle and retest the lower trend line and if the positive divergence remains in place (green lines), VJET should be good to go for basing and upside. These knife-catches are always dangerous.

VJET is a young stock only trading for 14 months. Note that a 50-week MA started to print in October and the 200-week remains undefined since the stock is too young. The 13 level is key S/R. Keystone opened a long position in VJET on Friday; it is a dangerous play and price likely needs to leak into the circle to provide another entry point. The RSI did not reach oversold territory which is something for the short sellers to hold on to but a recovery rally appears near. 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.