Whilst the main market saw some moderate weakness, there was again some significant declines in many of the shipping stocks. Dry Ships (DRYS) settled -3% @ $3.57, the second consecutive daily close under the important 50 day MA. Outlook is now bearish.
*I had strongly considered getting involved (long side) with DRYS last week..and indeed even at the start of this week, however, price action just looked overly weak, and so I dropped the idea.
First, an update on the BDI, weekly
Certainly, if we've just seen a lower high in the BDI, there are major problems ahead for not just the shipping/trans sector, but also the broader market. First downside target is a weekly close <1100. We'll see some media attention if the BDI slips back under 1000, later this month/early April.
A pretty lousy daily close for DRYS, and the weekly chart is starting to look pretty ugly.
If the main market rolls over next week, there is again the real threat of another major wave lower..back into the $2s.
I remain a 'fan' of the company, and more so, the sector in general, however...recent price action is indeed weak, and the next support is the 200 day MA, which is close to the $3.00 threshold.
A few daily closes <3, would bode very badly for the late spring, and across much of the summer.