DryShips Inc.: There Is Fuel in This DRYS Stock Rocket Ship
DRYS Stock: A Lottery Ticket
The first level of price resistance comes in the form of the 200-day moving average. The 200-day moving average is the dividing line between stocks trading in a bull market versus stocks trading in a bear market. When a share price is above the moving average, it is bullish. When a share price is below the moving average, it is bearish. Traders eye this moving average, and it has been known to act as support and resistance. The 200-day moving average currently sits at $78.58.
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The second level of resistance comes in the form of a downtrend line. The downtrend line, highlighted in blue, is created by connecting the peaks. A downtrend is defined by lower lows and confirmed by lower highs. It can easily be identified as the price moves from the upper left to the lower right. As long as this trend remains intact, DRYS stock remain bearish. This trend line will serve as resistance if DRYS stock approaches it. The downtrend line currently sits at $98.00.
The intra-day trading action on DRYS stock illustrates that an ascending channel has quickly developed.
There are two parallel lines that define this trend. The pattern is known as a ascending channel. An ascending channel has two trend lines that define the upper and lower bounds. The share price oscillates between these two lines for as long as the trend permits. A trend reversal occurs when shares finally gather enough strength to break out of the channel.
This channel may or may not contain the stock, but it looks like the run higher in DryShips stock is likely to continue higher until it reverses.
Bottom Line on DryShips Inc. Stock
DryShips stock has taken on a new life and the price is surging higher. Better yet, I do not think this run is over. However, there is one thing I have learned (and painfully so) and, as a result, I do not chase stocks. If my timing is off, losses can amount in the blink of an eye. I would rather leave this type of speculation on DRYS stock to traders much more savvy than me.