Trade of the Day: Reliable Indicator Signals DDD Stock is a Buy

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3D Systems Corporation (NYSE:DDD) — Trade of the Day readers have successfully traded DDD stock several times in the past 18 months. I first recommended it on Aug. 12 under $47.50. On Feb. 21, after shares hit my $80 target, I said it would be prudent to place a tight trailing stop at $78, which was triggered the next day.

Then, on May 28, I advised traders buy DDD stock again. My buy under price was $50, with a stop-loss at $43 and a target of $65. Shares ran to a high of $69.56 on July 1.

Since then, DDD stock has pulled back to around $30, but past experience has shown my Collins-Bollinger Reversal (CBR) system works well for trading this name.

Despite a Q4 earnings miss, DDD stock rallied Thursday morning. Some attributed this to a comment from the company’s CFO Chuck Hull, who said, “we believe fundamentals of business model remain intact and we expect gross profit margin to resume expansion.”

For the second time in three weeks, my CBR indicator triggered a buy signal. The previous one was on Feb. 9. DDD stock also penetrated its bearish resistance line on Thursday with an intraday high at $32.40. But shares pulled back while still closing with a plus day.

The breakout was accompanied by very high volume, and MACD is on the verge of a buy signal.

Buy DDD stock below $31 with a trading target of $40 for a gain of roughly 30%. A stop-loss order should be entered at $29.

DDD Stock Chart
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Article printed from InvestorPlace Media, https://investorplace.com/2015/02/3d-systems-corporation-ddd-stock-trade-day/.

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