It has been a while since we’ve last written about Desktop Metal (DM). Almost 4 months on the calendar.
The last post, “No Charm. Desktop Metal Yielded to Its Year+ Resistance,” was written after DM failed to break its best respected weekly resistance lines for the third time in about a year. That failure tossed DM to an all time low of $1.26.
Fast forward to today, DM calls for a visit.
Last week DM closed above its best respected body resistance line on a weekly chart, the 20-week EMA, for the first time since March 29th, 2021, which is the time this line earned its ‘best respected’ title.
Eliminating the 20-week EMA as resistance was a feat in Desktop Metal’s strong week; the stock’s highest trade of the week was at $3.36, one cent below its best respected wick resistance line (27-week EMA) on a weekly chart.
Zooming in:
As the weekly candle is now closed, we can add the closing price to the calculation of the updated wick resistance line.
The below updated weekly chart for Desktop Metal’s stock shows that:
- The 20-week EMA body resistance line is no longer respected and instead, the best respected body resistance line changed to be the 27-week EMA.
- The best respected wick resistance line is still the 27-week EMA.
(Technically, the decimal value changed from $3.370691 last week to $3.368499 this week, however, when using 2 decimal places both values round to $3.37).
DM needs to trade 2 cents up to break the March 2021 wick resistance line.
Can it do it next week? We’ll be sure to watch.