During the fast-paced "Lightning Round" on "Mad Money" Tuesday night, Jim Cramer was asked about 3D Systems Corp. (DDD) and his response was, "I didn't like the quarter. This is not the one to be in." That does not sound like a buy recommendation so I would suspect the charts are not bullish either. Let's check.
In this daily bar chart of DDD, below, we can see that prices have quickly given back most of the rally from the May low. DDD is below the declining 50-day moving average line and below the cresting 200-day line.
The daily On-Balance-Volume (OBV) line has been in a decline since the middle of August and tells us that sellers of DDD have been more aggressive.
The daily Moving Average Convergence Divergence (MACD) oscillator is in a bearish mode below the zero line.
In this three-year weekly bar chart of DDD, below, we can see a large sideways pattern to prices - $24 or so on the upside and $8 or $6 on the downside.
Prices are below the cresting 40-week moving average line.
The weekly OBV line has declined the past three months and the MACD oscillator could soon cross the zero line for an outright sell signal.
In this Point and Figure chart of DDD, below, we can see that prices have reached a downside price target but that is not a reason to buy.
Bottom line strategy: DDD may not decline all that much from here - perhaps to $10 or so, but it is not attractive looking and is likely to remain in a depressed state.