3-D Printing Stocks Put In Pivot Low: Buy Entry Tempting
Everyone loved the 3-D printing stocks when they were at their all time highs (just months ago). Now, everyone hates them when they are at their 52 week lows. I am a contrary trader, and anytime it is a hated sector, I take a closer look and usually buy. 3-D printing stocks have put in a near term bottom according to the charts and price action. After ugly earnings from 3D Systems Corporation (NYSE:DDD) yesterday morning, the stock reversed a majority of the steep losses and is jumping higher today. 3D Systems Corporation is likely setting up for a bigger bounce in the coming weeks.
Stocks like ExOne Co (NASDAQ:XONE), Voxeljet AG (NYSE:VJET), along with 3D Systems Corporation (NYSE:DDD) have all fallen around 50% from their all time highs in early 2014. This steep decline has punished buyers that bought the hype but has rewarded shorts that saw the bubble. Now, it appears the tides may be changing. With the market flat on the day, these 3D printing stocks are showing strong signs of life. The charts are all into significant support and near term, extremely oversold. It would not be a far fetched guess to think that the 3D printing stocks like 3D Systems Corporation could bounce 10-20% in the next month or two.
3D Systems Corp. showing a reversal today off its earnings drop yesterday is a very significant indicator. This stock is a profitable company and very few will disagree with the long term view of these companies dominating manufacturing in the future. While not in any of these stocks at this time, I am looking closely for a potential entry in the near future.