Mega Breakout In 3D Printing Bellwether Stratasys

This is how it usually goes: a stock or a sector rises, catches the attention of the masses, gets into a euphoria phase … and right at the moment when everyone thinks the world has changed because of that company or sector it all comes down like a house of cards. And when nobody pays attention anymore (because most market participants have sold with losses), a silent recovery starts.

Does this sound familiar? Have you found yourself chasing prices higher lately? If so, then this article is for you, as we are presenting you an opportunity that is still ‘under the radar’.

One of the sectors that truly collapsed in 2015 is 3D Printing, which happened after stock valuations reached unrealistic highs in 2014. Think of companies like 3D Systems, Stratasys, and the likes.

As everyone has given up any hope on 3D Printing, the sector is starting a silent recovery … driven by a small group of smart investors. That’s how it usually goes.

The bellwether stock in the 3D Printing sector is Stratasys (SSYS), a pure play 3D Printing company focused on manufacturing hardware and associated technologies.

SSYS broke out big time in February  of this year, and confirmed its breakout just one week ago.

The weekly chart (to detect long term trends) shows how meaningful the recent breakout it (circle right bottom). Based on the pattern that is unfolding, the breakout has a similar *importance* as the December 2014 breakdown (circle top center).

Basically, the daily chart (shorter term trends) is simply confirming the findings on the weekly: the recent breakout is clearly visible, and huge resistance sits at $50. Watch how resistance at $50 coincides with the declining 90 week moving average, which, most likely, will start to stabilize in the coming months somewhere below $50.

CONCLUSION:

This is the time when smart money is taking positions in 3D Printing. The breakout is clearly confirmed, and even on above average trading volume (see second chart). The first target is $35, second target is $50 (huge resistance both on the daily and weekly charts).