3D Systems Corp. (DDD) gapped to the upside earlier this month to extend a rally from November. Prices are in a position to retest the highs of 2017 so let's review the charts and indicators to see if DDD is worth buying on a technical basis.
(For more on DDD see Worried About the Right Thing?: Cramer's 'Mad Money' Recap)
In this daily bar chart of DDD, below, we can see the progression of rallies and corrections going back to November. If you look closely you may be able to notice that the time duration of the pullbacks has gotten shorter and that is a sign of strength.
Prices are above the rising 50-day moving average line and the now bullish 200-day average. In early May the 50-day average crossed above the 200-day average for what is commonly called a bullish golden cross buy signal.
The On-Balance-Volume (OBV) line has been in a bullish trend since November and its new high helps to confirm the price strength.
The Moving Average Convergence Divergence (MACD) oscillator is moving up from the zero line in a go long signal.
In this weekly chart of DDD, below, we have prices above the rising 40-week moving average line.
The weekly OBV line has been rising from November and the MACD oscillator is bullish on this longer time frame.
In this Point and Figure chart of DDD, below, we can see an upside price target of $29.82 or nearly $30.
Bottom line strategy: Aggressive traders could go long DDD near $18 risking below $15 for now. $30 is our upside price target.
