Velo3D Inc (NASDAQ:VELO) shares are hitting new 52-week highs on Tuesday after the company announced a partnership with the U.S. Army.

• Velo3D stock is approaching key resistance levels. What’s driving VELO to record levels?

U.S. Army Taps Velo3D For Additive Manufacturing

Velo3D has entered into a Cooperative Research and Development Agreement with the U.S. Army's DEVCOM Ground Vehicle Systems Center to accelerate the development and qualification of additively manufactured complex components and assemblies.

Velo3D shares surged more than 10% on the news before giving back gains. The stock briefly hit new 52-week highs Tuesday morning, per Benzinga Pro.

The collaboration is focused on addressing critical supply-chain challenges impacting ground combat vehicles and other military platforms. Velo3D's additively manufactured solutions will be made available for integration into the U.S. Army's supply chain following successful development of prototype parts.

“Velo3D is proud to be the first U.S.-based industrial scale OEM with domestically developed Laser Powder-Bed Fusion additive manufacturing technologies to additively manufacture alternatives for the U.S. Army’s ground vehicle supply chains,” said Arun Jeldi, CEO of Velo3D.

“Through our Rapid Production Solution, we are helping provide faster part delivery, enhanced reliability, and the surge capacity needed to meet evolving defense demands.”

VELO’s Strong Technical Indicators: SMA and RSI Analysis

Velo3D is trading 48.9% above its 20-day simple moving average and 227.1% above its 100-day SMA, demonstrating significant strength in the short and long term. Shares have increased 551.19% over the past 12 months and are currently positioned closer to their 52-week highs than lows, indicating robust upward momentum.

The RSI is at 74.02, suggesting that the stock is in overbought territory, which could indicate a potential pullback. Meanwhile, the MACD is above its signal line, reinforcing the bullish outlook for the stock.

The combination of an overbought RSI and bullish MACD suggests strong momentum but also raises caution for potential pullbacks.

• Key Resistance: $24.00
• Key Support: $22.00

Benzinga Edge Ranks VELO As A High-Flyer

Below is the Benzinga Edge scorecard for Velo3D, highlighting its strengths and weaknesses compared to the broader market.

• Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.
• Quality: Solid (Score: 66/100) — Balance sheet remains healthy.
• Value: Risk (Score: 4/100) — Trading at a steep premium relative to peers.

Velo Shares Are Volatile

VELO Price Action: Velo3D shares were up more than 10% in early trading Tuesday before pulling back. The stock was slightly down at 1.63% at $21.73 at the time of publication, according to Benzinga Pro.

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