Tuesday, 7 January 2014

DRYS - back test of the old resistance

Whilst the main market has seen slight weakness in the past few days, Dry Ships (DRYS) has slipped a little over 20% to back test the old $4.00 high. It is highly probable that $4 is the new floor, and we're now set for a push to the $6/7s.

DRYS, daily

DRYS, weekly


For the traders out there, this makes for an extremely easy trade.

Long, with a stop around the 4.05/3.95 area.

For me, the only issue now is not whether DRYS will battle higher in the coming days/weeks, but whether it can break into double digits by the late spring.

$10 sound impossible? I could reel off a list of a hundred stocks that have seen their price double up across just a few months.

As ever....DRYS..along with all the other shippers will react very closely to the action in the BDI...

BDI, monthly, 7yr

BDI target remains 3000/3500 by April/May...the 4000s are just about viable..if sp'1950/2050.