Trade of the Day: The ExOne Co. (XONE)

Use pullbacks to build your positions in this super-charged recent IPO.

   

Recent IPOs can offer the type of volatility that traders crave, but it’s important to look at the correct timeframe on their charts. For my current IPO recommendations, I’ve been following the 180-minute chart and, after searching through thousands of possible stocks, amid the launches of Supernus Pharmaceuticals (NASDAQ:SUPN), Five Below (NASDAQ:FIVE) and WorkDay (NYSE:WDAY), I’ve found a recent IPO in the 3-D printing space that looks ready to take off again after a stellar debut.

The ExOne Co. (NASDAQ:XONE) stormed out of the gate, rallying some 40% since it debuted in early February. The 3-D printing space is heating up, and XONE has seen continued buying pressure since then, which has resulted in a bullish signal for the shares.

Traders can initiate positions in XONE in the $33.50 area or below, but be sure to take advantage of any pull backs to accumulate additional shares. As far as its projected path up, the stock appears to have formed a little cup and handle pattern as noted by the blue line in the chart below. While the technical pattern is subjective, the upside target I have for XONE is north of $46.00 in the short-term.

XONE 4 02 13 Trade of the Day: The ExOne Co. (XONE)

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the Open, Parabolic Options and Trending123.  For more information on which service is for you click here.


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