Could 3D Systems Stock Be Ready For A Breakout After Crushing Earnings?

3D Systems Corp. DDD shares are trading higher Tuesday after the company had much better-than-expected second quarter earnings.

Earnings per share came in at 12 cents, beating the analyst estimate of 5 cents per share. The company reported revenue of $162.6 million, beating the Street estimate of $141.9 million.

3D Systems was up 21.48% at $34.44 at the close. 

3D Systems Daily Chart Analysis

• Shares attempted to break out of what technical traders call a pennant pattern, but were rejected by the pattern resistance and have fallen lower back into the pattern.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The price has been condensed between narrowing highs and lows, and were almost able to break above pattern resistance.
• The Relative Strength Index (RSI) pushed higher Tuesday and now sits at 66. Buyers moved into the stock after solid earnings.

What’s Next For 3D Systems?

Bullish traders would like to see the stock stay near pattern resistance and eventually break out. If the stock breaks out with above average volume, it may see a strong upward push.

Bears would like to see the stock move lower and fall below the pattern support. A break below support with consolidation could let the stock see a further bearish push.