Stratasys (SSYS) Swing TradingIntroduction : After rushing up vertically, 3d-printing stock Stratasys is currently moving sideways with a tendency for further gains, which is however not yet confirmed and opens up possibilities for swing-trading in rather short timeframes.
Analysis : The midterm-upward trend has been left, with the last highs forming a slightly downward moving resistance which is currently being tested. A triangle is formed, taken into account the short-term downward trend that was created when leaving the mid-term upward trend. The distance between both trendlines currently amounts to roughly 11 percent, opening up short- and long opportunities.
Idea :
- Shorties might issue an order at the current price level (45.90) with the aim to take profit at 42.39, where a rebound seems likely due to further resistance. In this case, a stop-loss should be placed slightly above 46.49 (e.g. at 47.00), as an outbreak beyond this level, else, could lead to significant losses.
- Alternatively (or subsequently) traders might wait and seek for a a long-position at 42.39, aiming to take profit at 45.90 in an expected rebound.
- Depending on risk propensity, long-investors might further consider a second tranche to be bought at 40.56 with a tight stop-loss placed at below 39.01.
- Alternatively, a stop-loss at 40.56 makes sense (to allow some volatility on the way upwards, which is expected due to the likely rebound).
