Today we will be analyzing another head and shoulders patter (H&S).
For a review of the definition of a head and shoulders patter, please
feel free to take a look at yesterday's article on AAPL.
3D Systems Corporation engages in the design, development, manufacture, marketing, and servicing of 3D printers and related products, print materials, and services. The company's principle print engines comprise stereolithography, selective laser sintering, multi-jet modeling, film transfer imaging, selective laser melting, and plastic jet printers. Its 3D printers convert data input from computer-aided design software or 3D scanning and sculpting devices to produce physical objects from engineered plastic, metal, and composite print materials. In addition, it provides custom parts services, such as precision plastic and metal parts service and assembly capabilities. The company markets its stereolithography materials under the Accura and RenShape; laser sintering materials under the DuraForm, CastForm, and LaserForm; and materials for professional printers under the VisiJet brands. It primarily serves manufacturers of automotive, aerospace, computer, electronic, defense, education, consumer, energy and healthcare products, as well as original equipment manufacturers, government agencies, universities, and independent service bureaus.
To review the H&S pattern that has formed on 3D's stock, please take a look at the 1-year chart of DDD (3D Systems Corporation) below with my added notations:
3D Systems Corporation engages in the design, development, manufacture, marketing, and servicing of 3D printers and related products, print materials, and services. The company's principle print engines comprise stereolithography, selective laser sintering, multi-jet modeling, film transfer imaging, selective laser melting, and plastic jet printers. Its 3D printers convert data input from computer-aided design software or 3D scanning and sculpting devices to produce physical objects from engineered plastic, metal, and composite print materials. In addition, it provides custom parts services, such as precision plastic and metal parts service and assembly capabilities. The company markets its stereolithography materials under the Accura and RenShape; laser sintering materials under the DuraForm, CastForm, and LaserForm; and materials for professional printers under the VisiJet brands. It primarily serves manufacturers of automotive, aerospace, computer, electronic, defense, education, consumer, energy and healthcare products, as well as original equipment manufacturers, government agencies, universities, and independent service bureaus.
To review the H&S pattern that has formed on 3D's stock, please take a look at the 1-year chart of DDD (3D Systems Corporation) below with my added notations:
DDD has been on a nice rally since December of last year. Over the last (3) months though, the stock has created a very important level at $32.50 (blue), which would also be the "neckline" support for DDD's possible H&S pattern. Above the neckline you will notice the H&S pattern itself (red). Confirmation of the H&S would occur if the stock broke below its $32.50 "neckline". If DDD breaks that level, the stock should move lower from there.
Keep in mind that simple is usually better. Had I never pointed out this H&S pattern, one would still think this stock is moving lower simply if it broke below the $32.50 support level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break below the key $32.50 level.
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