Many of the snapback rallies/short squeeze in beaten-down growth and momentum issues have been expected since May, as savvier shorts either lightened up or cashed out fully into the growth swoon in March/April of this year.
A name like DDD, along with the rest of the 3D printing gang, has especially seen a sharp squeeze of late.
Today, the stock is fading off a well-defined price level, highlighted on the daily chart, below. You can still see the topping pattern in play from earlier this year, as the chart has not yet healed.
Headed into next week, after the holiday, it will be interesting to see if the stock can make a full recovery or instead will resume it downtrend from the spring months.
Either way, a pullback here in these extended high beta names which have rallied from the hole should also now be expected, just as the squeezes were last month.
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GDX/GDXJ not closing all that well
Chess, for learning purposes (not challenging you at all), could you please explain how you identified the well-defined price level? Thank you, and I appreciate the insight.