3D Systems Comes Roaring Back: Our Technical Strategy

Let's check out the charts of this manufacturer of 3D printers and printing materials.

One caller during the Lightning Round segment of Mad Money Thursday evening asked Jim Cramer about 3D Systems (DDD) . "This one is back and it's real. I'm glad you brought this one to our attention," Cramer told the caller and his loyal viewers.

Let's check out the charts of this manufacturer of 3D printers and printing materials. 

In the daily bar chart of DDD, below, we can see that the shares traded sideways in a relatively narrow range for much of the past 12 months. DDD started to strengthen from late November as it moved above the 50-day and 200-day moving average line. A bullish golden cross of these averages can be seen in early December.

Trading volume is hard to see because of scaling issues but it has increased in January and we can see that the On-Balance-Volume (OBV) line turned higher in early October.

The Moving Average Convergence Divergence (MACD) oscillator turned bullish in October. There has been some recent narrowing of the MACD oscillator so that needs to be watched more closely. 

 

In the weekly bar chart of DDD, below, we can see the past four years of price movement. The shares were in a longer-term decline before turning upward three months ago. Prices are above the rising 40-week moving average line.

 

The weekly OBV line shows a rise from September as buyers of DDD became more aggressive. The MACD oscillator is bullish.  

 

 

In this longer-term weekly chart of DDD, below, we can see that the shares broke out of a five-year base pattern. There may be resistance found above $50 but may turn out to be just psychological resistance as traders have had a long time to change their holdings.

 

 

In this daily Point and Figure chart of DDD, below, we can see a potential price target in the $67 area.  

 

 

Bottom-line strategy: I would be a patient buyer of DDD. Ideally a pullback to around $35 would be to my liking and then we could risk to $29.

 

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