Science of Stock Price Action: When a stock makes a Large candle move, it then does some consolidation before making another round of big move. The consolidation sometimes looks like Open Umbrella.
Case Study: DDD 3D Systems Corporation
3D Systems Corporation has done all the right things so far: A Large Candle move with Open Umbrella. Ideally, the stock should resume upside move again.
Fundamentals: The 3D printing industry is quietly making a comeback with newer applications for commercial use. The company recently reported earnings much better than expected which caused the stock to spike in the first place.
It is a high-risk high return play and if the stock slips below $17.8 one should be out.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers