Amaero's Qualification Sparks Velo3D's 12.5% Surge, Boosts Sector Confidence

VELO (NASDAQ:VELO) shares surged 12.5% to $6.67 in Tuesday's pre-market session, with traders noting the price consolidation above the 0.236 Fibonacci retracement level—a pattern historically associated with potential 1,500% rally setups, according to Benzinga's pre-market report. The move follows recent developments involving Velo3D's qualification of materials produced by Amaero Ltd, signaling growing industry confidence in the additive manufacturing sector.

The stock's upward momentum coincided with Amaero Ltd's announcement that its C103 and Ti64 powders have met Velo3D's qualification standards, a critical milestone for the company's expansion into defense and aerospace applications, according to Amaero's September report. Amaero, a leading U.S. producer of refractory and titanium alloy powders, reported a 445% revenue increase in its September quarter, driven by surging demand for its advanced manufacturing solutions. The partnership with Velo3D, a key player in precision 3D printing, underscores the strengthening of domestic supply chains for mission-critical components.

Technical traders highlighted the significance of VELO's current price action. The 0.236 Fibonacci level, a common support/resistance indicator in stock analysis, has historically preceded substantial rallies when breakout conditions align with positive fundamental catalysts. Analysts suggest that VELO's consolidation above this level, combined with its recent partnership validation, could position the stock for a renewed upward trend.

The pre-market surge also reflects broader optimism in the industrial and advanced manufacturing sectors. Velo3D's market cap now stands at $118.0 million, with investors closely watching whether the company can sustain its gains amid heightened competition in the 3D printing space. Meanwhile, Amaero's strategic collaborations, including its exclusive supplier agreements with Titomic and Knust-Godwin, further solidify its role in reshaping U.S. manufacturing capabilities.

As the market digests these developments, traders will monitor key resistance levels and volume patterns to gauge the sustainability of VELO's rally. For now, the confluence of technical indicators and fundamental progress has rekindled interest in the stock, with analysts cautioning that volatility remains inherent in the sector.