Last year started with a bang for the 3D printer industry. Stocks like EsOne (XONE), Stratasys (SSYS) and 3D Systems (DDD) were at or near all-time highs. Back in October 2013, Voxeljet (VJET) debuted as a publicly traded company and the stock screamed to $70 from $20 in one month.
Those were the, "Wow, can things get any better?" days. When the answer to that question is "no," then it's typically time to go and that's what happened. Since early 2014, XONE lost 80% of its market cap, SSYS lost 60%, and DDD lost 73%. VJET lost as much as 90% of its market cap. In essence, these companies were given up for dead.
But we're now seeing bases forming on these stocks and one of the better ones (combining a constructive pattern with trading liquidity) is DDD. This daily chart shows a four-month base pattern that's finally allowed a declining 50-day moving average to catch up with it and flatten out. Now the stock is breaking out of a volatility squeeze and looking like it's ready to move higher. The other stocks in this space are likewise banging out bases, so this group is under accumulation.
Support is down at $26.50. As long as DDD stays above that level, this is a stock that you need to own.