In what could be described as profit taking in a name that has been strong all year, the selling pressure in DDD has moved price lower all September.
Today the stock has pulled a bit of a turnaround, as buyers reacted to the discounted prices and began buying in the morning. The buy flow has continued throughout the day and I’m watching as we enter the afternoon session to see if buyers continue to dictate price higher.
The CCI indicator below my charts is something I monitor to get a feel for momentum. I use a shorter timeframe to gauge the small swing, and a longer for the intermediate move. This most recent move lower has set up a divergence. Price has moved lower while the indicator failed to make new lows. It’s a signal we could be seeing downside momentum decelerating.
FD: Long with a cost basis of $38.75Twitter