3-D printing stocks have fallen out of favor.
3D Systems (DDD) just fell to a 52-week low of $20.82, as an example.
But if history repeats itself – technically – the stock could see a respectable bounce off recent lows. Four of the last six times RSI dipped to its 30-line -- coupled with an MFI move to its 20-line, shares of DDD have bounced.
The stock is now at similar lows again now. Even Williams % Range is stuck at -100. This – in my opinion – cannot last much longer.
The bears are crowding the short side of the trade. It’s only a matter of time before we see a move higher in such an oversold stock.
Considering companies are printing everything from toys and shoes to jewelry, guitars... and even guns, there’s a lot to get excited about.
- A Belgian team of engineers produced a 3-D printed car called the Aerion that could go from 0 to 62 mph in 3.2 seconds with a top speed of 88 mph.
- In January 2012, a French model maker created the very first life sized robot that can be 3D printed.
- A Chinese company can print 10 one-story buildings in a single day.
- Fashion designers are experimenting with 3D printing when it comes to fashion with hats and dress, shoes and jewelry.
- Car manufacturers are using 3D printing for concept cars.
- Folks are even 3D printing food.
- Jay Leno recently used a 3-D printer for a rare part he needed for a vintage motorcycle.
- Engineer Michael Guslick claimed that he printed and fired the world’s first homemade
- In September 2014, the Space X Dragon Ship carried the first operating 3D printer to the International Space Station so astronauts can print tools for missions, according to CBS News.
While the adoption of 3D printing is accelerating, related stocks are still stuck in a sustainable downtrend. But we can’t ignore the high likelihood of a near-term bounce, given massively oversold technical reads.
Without risking too much, I’d consider two ways to trade this.
One, buy just the underlying stock up to $22 a share with a firm -25% stop loss.
And, or two buy to open a long-dated DDD January 2016 22 call up to $2.80.