I have been watching DDD for a very long time, looking for a good spot to go long in this growing bussines. I believe that there is a buy signal right now. The only problem with it are the general market (stock market) conditions, which right now are unclear, at least for me. If there would be a clear long signal on the Dow or the S&P, I would buy a larger quantity of this stock than I would now. But I will ignore the uncertainty of the general market and take the long signal from 3D, with caution.
At the beginning of February, there were some bad reports on the 3d printing business and every stock in this sector fell heavily. That very day DDD came back strongly, but the risk reward wasn't great so I decided to wait. Right now the stock is at that very low, retesting with a bullish divergence, forming a double bottom, simply said, offering a better price to buy.
Looking at the weekly chart, there is a hidden divergence, labeled here on the daily. Hidden divergences are continuation signals of the prevailing trend. Back to the daily, I labeled 4 extreme price deviations from the MA wave. Right now, price is strongly deviated and a bounce should come.
The double bottom target is close to the round level of 100$, but that is way too far away to consider for the moment. Right now, my target is previous high at 80$ area.
Comments
ALee
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while 20 DMA failed E23 is no long history of no - work from short. the output from a flat corridor 21-23,5 will show the future direction ...
aryahi29
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42 AND 40 ARE THE LOWER FIBONAXI PIVOTS
aryahi29
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I expect DDD to bounce between 42 and 40.. THE STOCHS SHOW THE BOTTOM IS NOT YET FORMED ON A DAILY CHART, NOR ON WEEKLY CHART
TradeVulture.com
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Vlad. Stop arguing with me for a moment and try to understand why my 44-50 range short target was important. It's a monthly support. Larger frames are always right. Smaller frames setup to complete a larger frame move. You called a double bottom on the daily, because you didn't look at the leg start on the monthly chart. You called a long target because its a 618 fib level. General market conditions have nothing to do with this. Markets must first setup by accumulation/distribution before a move can be made. When you use words like general market conditions, it means you don't really understand how the market moves. If you want to know more, start asking the right questions. I'm not trying to be argumentative, I'm trying to let help you understand a very very very important concept.
vlad.adrian
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I wasn't arguing, I truly didnt understand what you meant with 'I don't ever include timeframes'. Once again, I'm saying I don't have anything against the monthly chart, I just don't use it. For me, weekly and daily is enough. This doesn't mean that using monthlys are wrong. I just don't look at it, that is my method of analysing markets, which, if you would check out my previous charts, you would notice how accurate it is.
I called a double bottom for 3 reasons :
1 - weekly chart retraced after a crazy move, to its moving averages
2 - I saw signs for the end of correction on other Bubble stox, Facebook, Netflix and Amazon
3 - The diverging double bottom itself.
For me, it was a trade worth to take. My view is simple, and when I see something like what I saw here, I will always take it.
Now, regarding general market conditions, I don't undertstand how you say general market conditions had nothing to do with this. In a bull market, most stocks go up. In a bear market most stocks go down. In a correction, most stocks go down. In rallies, most stocks go up. It's as simple as that. At the moment I posted this chart, I though the correction on the Nasdaq index, and the stox it includes, was over. Well, it wasn't, I was wrong, and all stocks lost a lot of their gain. You tell me general market conditions had nothing to with this. Then please explain to me how you call a long on Netflix while you call a short on 3D? Just explain this to me and if I will see you have a point I will shut up and comment no more.
vlad.adrian
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sorry for the spelling mistakes, using monthlys is wrong and a trade worth taking
Wyckoff_Trader1
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Each individual stock is a market in itself. Some of those markets will obviously move with general market, but they have to complete whichever formation they are in(i.e distribution, accumulation, markup, and/or markdown). Infinite Margin is 100% correct, and he is one of the very very few traders who understand how the market truly moves. Take Note.
vlad.adrian
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Yep, Long Netflix and short 3D at the same time is 100% right. I recommend 'reminiscences of a stock operator'. There are a few valueble lessons about how stocks move according to general conditions.
Regarding infinite margin's views regarding distribution, I didn't argue with that for one second.
TradeVulture.com
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I see we test 44 again. You figure out how I came up with that level on the monthly chart yet?