Today we are going to examine the trend of Velo3D's stock which is part of the 3DE-10 INDEX, a 3D printing stock index tracking the stock performance of 10 leading 3D printing companies listed on exchanges in the United States.
Yesterday the company released it's Q3-2022 results and took a hit, dropping over 30% a day. Let's examine the short and the long term trend to try and understand to which direction the stock is heading, and if this drop it only a one-time event:
Velo3D - VLD
Image source: Yahoo finance
From the peak point of $10 a share in March this year, the stock hit an all time low of $1.35 a share in July. Form that point it surged to around $5 a share in only 40 days! From this point forward, the 200 days moving average was a strong resistant level, and the stock didn't have enough buyers in market to take it to the next level.
If we zoom in to the last few months, we can see the following:
Image source: Yahoo finance
The stock is trading in a negative trend when breaking down the 4$ level was a trigger for sellers to unload more shares. The peak was yesterday with the release of the quarterly results, taking the stock down to a closing price of $2.19 in a high volume, which is not a good sign.
In the short term the stock may go up to around 3$ a share but this will not change the long term negative trend. Only a cross up of the 4$ level in high volumes can change the picture.
> Any opinions, analyses, prices, or other information contained in this overview are provided as general market information for educational and entertainment purposes only, and do not constitute any investment advice <