When we last talked about Desktop Metal (DM) it demonstrated strength.
However, since then the stock could not finish a trading week above its almost-13-month body resistance line. Overall, the 20-week EMA, which registered on March 29th, 2021, still stands and still gains DM’s respect.
In the time since our last post, DM lost its weekly support lines. That’s not a bullish sign.
The recent price action answers our March 17th question ‘Desktop Metal: Is Third Time the Charm?‘ with a clear ‘No.’
No charm.
An updated weekly view shows the picture clearly:
Still, the 20-week EMA reigns as the body resistance line, now at $4.83, and slightly above hovers the 27-week EMA wick resistance line at $5.37. Both registered 13 months less a week ago.
The daily view tells a similar story, only with a higher resolution and different moving average lines.
The best respected moving average lines are different on the daily chart (compared with the lines on the weekly chart) because the computation is performed using a daily price action. That’s a different set of data. Support lines are nowhere to be found and the two strong resistance lines registered exactly a year ago:
- The 108-day EMA acts as the body resistance line, currently at $5.11
- The 127-day EMA acts as the wick resistance line, currently at $5.42
