3D Systems (DDD) exploded on the upside this month. Prices are extended and we will want to buy a pullback. Looking at our weekly chart and a Point and Figure chart, we notice there can still be further gains.
DDD has emerged from a large base formation that stretches back to the middle of 2015. Longer-term gains to $30 or higher could be seen in the months ahead. Let's check our updated charts and indicators.
In this daily bar chart of DDD, above, we can see part of the base pattern. Prices show (above) a triangle-like pattern, with higher lows and lower highs for much of the past 12 months. The higher lows can be see in June/July and then November/December and in March. The lower highs come in October and January/February. As prices approached an "apex", they exploded higher.
DDD is above the rising 200-day moving average line and the rising 50-day line. The On-Balance-Volume (OBV) line has been rising since August, telling us that buyers have been more aggressive, but the OBV line goes vertical this month. The Moving Average Convergence Divergence (MACD) oscillator is in a strong bullish mode now, above the zero line.
In this weekly bar chart of DDD, above, we can see a large bottom formation. Prices are above the rising 40-week moving average line. The movement and trend of the weekly OBV line is impressive, in that it turned up in late 2015 and has maintained an uptrend the entire time since, along with recent new highs. Buyers of DDD have been more aggressive in buying and accumulating shares for months. The weekly MACD oscillator has also been above the zero line for months.
In this Point and Figure chart of DDD, above, we can see the base pattern and the key breakout at $20. A measurement of the base projected higher gives us a potential price target in the $35-$36 area.
Bottom line: prices are extended on the upside, so we would want to buy a pullback towards $20 and then risk below $18; $30 and then $35 are our upside price targets.