It's time for an update on Stratasys (SSYS). As mentioned in my most recent piece on the stock from last month, we saw both a rally from the counter-trend support level and a selloff from one of the symmetry-based resistance zones. Overall, we have recently had opportunities on both sides in some of these kinds of stocks, and that could easily continue.
With this in mind, it's time to look at the next key levels in Stratasys. As you can see on the weekly chart above, support on this chart -- mentioned in my last piece -- has held up. This chart also shows a failure to clear the key symmetry resistance. So, again, there is still a case for both sides here.
Today, though, I'm going to focus on more immediate matters: the buy side on the daily and intraday charts.
Above, then, is the daily chart of Stratasys -- which shows that the price is still holding above the key May 9 timing-and-price-based low. Now, if this low is an important one in the bigger picture, we should hold our Stratasys position on a pullback to that level -- and new buy triggers should fire off to tell us it's worth placing another bullish bet.
For the buy side, there are two zones on the daily chart that I am interested in: between $91.48 and $92.03, and from $89.69 to $90.60. Since the stock is already testing the first zone, I am stalking the stock for a buy trigger -- a move that tells me it is worth placing a bet against a particular trade zone. (See the link for more information)
My risk can be defined either below the low made prior to a buy trigger, or below the above-mentioned zones. My weekly chart shows that, for a trade off the lows, the initial upside potential is between $113.60 and $117.93 -- which would just be a retracement of the prior major decline in this stock.
All in all, the risk-reward scenario is decent on this setup. Let's see if the buy triggers fire off this week. If they do, it'll be time to place another bet.
Please refer here for more information on trade triggers.
See here for general guidance on Fibonacci trade setups.
