DRYS is one of those shippers that folks either love or they hate with a passion. I try to check my emotions at the door and ask the chart to tell me the story. So looking at the chart we see a nice little bounce but will it continue?
I really think it may but when we get to the $9 level we really want to re-evaluate. Right now we want to stay above the yellow trendline as it has set up as a great support area. If that fails then we always have $4.70 as strong support.
What's my long term outlook? It's not good. The current move up we see is part of a wave #4 of a 5 wave sequence that I have been watching. I am thinking we may get as high as the $9-10 area before we finally see a move back down. And this move down may be lower than the PPS levels we saw in early March or the bottom of wave #3. The lowest was $2.72 and I think we may test that area once again or maybe even surpass it.
This is the same story for most of the market. We are currently in a little bull run but have not left the overall bearish trend. Once the 5th wave has been completed, we can look for real growth on the PPS once again. The rest of 2009 will be working to set up this recovery into 2010, IMO. But that doesn't mean we can't make money on this current move.
I will be always watching DRYS as it's one of those stocks that really moves. So here's the chart:
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