Weekly chart on DRYS shows that it has been closing outside the channel for the fourth consecutive week. Simple TA tells that there is more downside ahead. If it ever closes inside the channel, that would be the only time to become a bull. DRYS is probably holding up till year-end as it was one of the hottest stocks of this year and fund managers will continue holding till year-end.
4 comments:
BDI about to topple. Too much capacity coming online very quickly. Rates will go from obscene (high) to obscene (low)
Revelstoke Real Estate>
Could closing outside the channel after being in it for awhile signal a strong rebound as market conditions improve, and therefore selling now is not advisable?
Would welcome comments on how the NMM spinoff affects NM.
Yes, BDI has gone up too fast. So, it needs to correct quite a bit in 2008.
Closing outside the channel would mean change in trend. The previous trend was up. The next trend will be down or flat(if very strong). It is always good to look at the weekly chart as it gives a bigger picture.
I don't follow NM but looking at the chart, it seems that it is at a good support point. It always seems to bounce from the 200 EMA. So, if it doesn't bounce this time, then there could be something more wrong than a normal corrective.
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