We’ve opened a bearish trade on 3D Systems (DDD). 3D Systems has risen more than 100% since its mid-January low of $6, and we think its bullish momentum has run out. We’re not looking for the stock to drop all the way back down to $6 in the run up to its earnings announcement on Tuesday, March 15, before the market opens, but we do anticipate it will drop back down toward support at $10.

3D-printing companies have had a rough go of it during the past couple of years. After peaking just below $100 in 2013, 3D Systems has been in a persistent down-trend because 3D printing just hasn’t taken off like so many hoped it would. As more and more companies came into the space, supply quickly outstripped demand.

Recently, Stratasys (SSYS) popped, lifting the rest of the industry, as it reported better-than-expected numbers for Q4, but the numbers still weren’t good. SSYS still reported product revenue fell by 26%.

3D Systems itself has already had to postpone its earnings announcement this quarter, which is never a good thing. It was originally scheduled for Feb. 29, but management said it needed additional time to work on its Q4 goodwill/asset impairment charge. It is expected to be more than $500 million.

From a technical perspective, the “shooting star” on March 4 has created a strong bearish signal for 3D Systems. Watch for DDD to drop back down from its over-extended levels. Here’s how to profit from it:

‘Buy to open’ the DDD April 11 Puts  for a maximum price of $0.85.

We do not have a target or stop loss in place. Instead, we’ll be watching the stock’s performance to tell us when to exit.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. To receive further instructions on this trade, get in on the next SlingShot Trader trade and receive 1 free month today by clicking here.