MACD as a Sell signal starring 3-D Systems Corp

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I was reviewing the Daily chart of $DDD and noticed a nice clean sell signal using MACD so I thought I would share this simple approach:

Notice each time that the MACD touches the peak, price retreats after – including the recent Sell signal late last week. Can it hold the 20 SMA on this pullback?

  • Tom

    Umm, yes, in retrospect that is of course true. It’s a tautology. If DDD pulls back, that makes the previous high a peak. That may be true of ALL stocks. Or don’t I get it?

    • 1nvestor

      Yes, it is a peak that is sold. Then Dip Buyers look for a Supp location. In this case, it looked like the 20 SMA to me (and was). A nice spot to sell Puts, put on a R/R trade, go long stock, or buy a Call Spread.