Thursday, 24 October 2013

DRYS - failing to hold $3

Whilst the main market continued to broadly climb (not least the Transports), Dry Ships (DRYS) continued to fall, closing -2.9% @ $2.83. Near term trend is accelerating to the downside, and a full retrace to the original breakout zone in the low $2s now looks viable within a week or two.

DRYS, daily


Suffice to say, price momentum has increasingly turned bearish, and with the second daily close <$3-00, DRYS looks vulnerable to a few more days of significant falls.

Near term prime downside target is $2.25, where the 200 day MA will be lurking in the days ahead.

As ever, DRYS will react largely to the Baltic Dry Index (BDI), which is -10% so far this

BDI, weekly

So long as the BDI does not collapse below the 1200, the mid-term trend should continue to the upside, along with a broadly rising equity market.

DRYS will most definitely be a tempting target in the low $2s.