Wednesday, 9 October 2013

DRYS - significant retracement underway

With the main US equity market still rattled by the ongoing US Govt. shutdown/debt ceiling concerns, Dry Ships (DRYS) is on the slide, and closed -2.5% @ $3.31. Near term trend is weak, and some further downside looks very probable. Next downside target is $3, around 10% lower.

DRYS, daily


*the BDI - upon which the shippers are heavily affected by, is holding up very well. Regardless of the current market weakness, the recent ramp in the BDI is suggestive of some strength in world trade.

BDI, weekly

DRYS on the slide

In terms of price action for DRYS, first support is the psy level of $3, with the 50 day MA quickly rising in the $2.70s.

Certainly, $2.50 or lower seems very unlikely..even if the main market falls to sp'1600/1590 next week.

Along with the BDI itself, DRYS is one to watch in the current market pull back.