Desktop Metal, Inc. Price Analysis Powered by AI

Long-Term Analysis

The dataset for Desktop Metal, Inc. (DM) indicates a stock that has seen significant volatility over the past few months. A key observation is a long-term downtrend from November 2024 through to the start of 2025, where the price fell from above $4.00 to a low point around $2.00 by March. During this period, there have been a few sharp declines indicating significant market reactions likely due to earnings reports or other fundamental changes.

Point and Figure Analysis

Point and figure analysis would indicate a strong downward resistance line breached at various points, with recent prices moving above prior highs, suggesting a potential reversal of the downward trend. The rapid price movement from $2.75 to over $4.50 on March 25-26, 2025 indicates a strong bullish move that broke through resistance levels set in February and early March.

Short-Term Chart Patterns and Volume Analysis

Notably, on March 25, 2025, and continuing into March 26, 2025, there was a significant increase in volume accompanying a rapid price ascent from $2.23 to nearly $4.53. The increase in volume suggests strong buying interest and may indicate a reversal point in the stock's previous downtrend as a new upward trend emerges.

Relative Strength Index (RSI) and Momentum Indicators

Given the recent upsurge, the RSI is likely to be nearing overbought territory; however, this is less concerning in a strong bullish reversal or breakout scenario, especially after such a prolonged period of decline. Momentum indicators are showing a positive change, aligned with the price increase, suggesting continuation may occur in the shorter term.

Moving Average Convergence Divergence (MACD)

The MACD likely turned positive if calculated with this dataset, signaling bullish momentum. The cross above the zero line can often confirm buying opportunities.

Fibonacci Retracement

The sharp increase beyond prior resistance suggests that current retracement levels might hold as new support levels. Key Fibonacci retracement levels would suggest a near-term support around $4.10, with potential upward targets near $4.75 based on typical Fibonacci extensions.

Volume-Weighted Average Price (VWAP)

Recent transactions such as those in the early hours of March 26, 2025, showed a price concentrated around $4.50, suggesting this is a critical price level in terms of market agreement. Breaking above the VWAP and increasing from this point indicates a favorable long position.

Conclusion

Despite recent historical downward trends, the breakout above significant resistance levels coupled with consumer psychology, indicated by volume changes and upward momentum, suggests a strategic point to consider a long position. However, potential regression to mean in the short to mid-term should be monitored.

In conclusion, the technical indicators suggest building bullish momentum with possible continuation. Given the recent breakout and significant volume, a buy order is advised just above the recent consolidation range to safeguard against false breakouts while allowing for further upward movement.