If we are correct in viewing the beaten down US manufacturing sector as a better place to be long (ref. recent ISM data) than the over valued likes of the general market, then we would want to focus on ‘best of breed’ in the sector. I have often noted Faro as being a great and innovative company. I have had a lot of negative things to say about 3D Printing as an investment destination (though the technology itself is fabulous). But Stratasys is in my opinion best of breed in this beaten down space.
We noted SSYS and others briefly in NFTRH 389. Let’s look closer at this one. Remember when legions of robots (MakerBot pun not intended) could not wait to buy this at over 100 bucks a share (topped at 138)? It has been a long ride down and as noted in the weekly report it changed the short-term trend by rising above the SMA 50 and this week it has also popped above the SMA 200, which could change the longer-term trend. An interesting chart.
The weekly view shows what looks like a Cup with the Handle breaking upward now. Cups and Handles are usually thought to be continuation patterns, not reversals, so take it with a grain of salt. Whatever it is, I took it yesterday with an initial position as it tested the daily SMA 200. The weekly shows MACD headed in the right direction and RSI above 50. A break above 30 would measure to around 36, which depending on the US dollar and the manufacturing sector, would not need to be a stop sign.
Buy Target: 26 to 27
Sell Target: 36
Stop Loss: To suit risk tolerance, below 25 (EMA 20), which would also be below the SMA 200. If one feels more like an investor, allow more wiggle room to the upturned SMA 50.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.