Traders Wonder if Nano Dimension Is a Whale’s Tale


In recent months Nano Dimension (NASDAQ:NNDM) has caught the eyes and wallets of both a whale and apes. But today, is NNDM stock right for the portfolios of more common bulls? Let’s take a look at what’s happening off and on the price chart of Nano Dimensions, then offer a risk-adjusted determination aligned with those findings.

Nano Dimension logo in an iPad, on the background their proprietary 3D printer
Source: Spyro the Dragon /

Love them or leave them, Redditors (or apes, as they’re also called) are firmly entrenched on Wall Street these days. To be more precise, the group has been making its brief presence – and as fast – lack of attention known in select companies whose shares are ripe for brief fits of market-moving muscling.

From January’s celebrated and reviled short-squeeze scheme led by GameStop (NYSE:GME) and AMC (NYSE:AMC) or very recent moonshot in Virgin Galactic (NYSE:SPCE) or Newegg (NASDAQ:NEGG), the apes’ knuckle-dragging prints are visible. And as they are in NNDM stock too.

Apes and NNDM Stock

Big things were happening in the Israel-based 3D printing stock in 2020’s final quarter and entering 2021. Well, kinda sorta. But without question the smaller valuation and modestly-covered NNDM shares were an increased object of apes’ affections during the period.

And that made a big impact in Nano Dimension.

Amid elevated #NNDM hashtags, rumors and hype, cute pics, eternal pledges of love and fear mongering on the WallStreetBets chat forum, from early September to late January NNDM stock surged from roughly $1.50 to a peak of nearly $18 a share.

Still, love them or hate the apes, there was some weightier substance to their interest in Nano Dimension.

The Ark Arrives

Enter Cathie Wood. The investment manager’s Ark Invest funds became the “it” star of the exchange-traded fund world this past year on the back of dazzling returns in the outfit’s highly-concentrated and actively managed growth-centric funds.

Significant stakes in Tesla (NASDAQ:TSLA), Roku (NASDAQ:ROKU) and Zoom Video (NASDAQ:ZM) among others helped drive its market topping returns.

And now Cathie was buying NNDM stock. Apes appear to enjoy Wall Street whales as much as cute kitten gifs. Well, for a short while anyways and before another next big opportunity crosses their path.

Today, chest-beating apes are busy elsewhere as quiverquant’s visuals on group activity indicates. But Ark remains invested in NNDM to the tune of just over 15 million shares split even between its Autonomous Technology & Robotics ETF (NYSEARCA:ARKQ) and Ark Next Generation ETF (NYSEARCA:ARKW).

It sounds like a large NNDM stock commitment. And it is, in one way at least.

With a history of Ark funds assigning a portfolio weighting of as much as 10% into a single stock, today’s smallish 0.87% and 1.74% stakes could also prove minnow-size positioning before throwing more sizable weight behind the shares. Or not.

NNDM Stock Monthly Price Chart

Nano Dimensions (NNDM) corrective low in play but price action appears fragile

Source: Charts by TradingView

Could NNDM stock become a top holding and huge winner for Ark Invest? A newer management team, a smart pivot into broader application 3D printed technology and extremely healthy cash position helped along by Redditors, certainly allow for some dreamy-eyed optimism.

Right now though, shares don’t look ready for other bulls’ portfolios. Today, being upbeat on NNDM is increasingly at odds with what’s happening on the Nano Dimension monthly price chart.

The good news and as the illustrated monthly view reveals, NNDM has manufactured a corrective bottom. Pattern confirmation was received this past month when shares traded above May’s bullish hammer candlestick.

But it’s Nano Dimension’s secondary technical evidence which doesn’t stack up nearly as well, which has us concerned.

Use Caution

The worry is June’s failure to follow-through and only the tiniest of upticks in monthly volume. As well, NNDM’s monthly stochastics failed to even flatten in neutral territory, let alone signal a bullish crossover alongside the hammer event.

With shares of NNDM now caught modestly back inside the candlestick pattern and wedged in-between the 62% and 76% retracement levels, throwing caution to the wind isn’t advised. Nor is a purchase of NNDM stock.

Bottom line, if bulls are going to follow one whale’s wake and maybe find themselves in an apes’ den, an intermediate to longer-dated vertical or collared NNDM stock position should strategically assist with investors long-game, for better or worse.

On the date of publication Chris Tyler holds positions in Ark Invest ETFs (ARKK and ARKG). The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC