DRYS - how would you trade this?

L

Liquid validity

0 0
OK, just my opinion, may well turn out to be total gash.
Right now I would leave it well alone.
I'll qualify that by saying I am talking purely from the perspective of price.

Reasons:
1. Chart goes back to 2010, checked 5 yr chart as well.
Current run looks to be not far off, other recent runs.

2. Best entry for this move has been missed - 1.75/2.00 support.

3. Current price is potential Feb 2012 resistance.

4. Even if it does go higher, I would be expecting a retrace or at least
a test of 3.86 area (3.25-4.00).

Over rides:
Just one - convincing high volume break of 4.00 with a daily range of around 0.50
Long exit - 3.75/3.50.

In a nutshell, buy support, sell resistance.
All depends on whether you know more about the company - reports, accounts,
new shareholders etc.
Any recent major deals that may be causing a more long term turnaround?

Like I say, you asked for opinions, thats all this is, another worthless opinion :)
Truth is, I have no idea what price will do tomorrow.
 
Last edited:

VielGeld

Experienced member
1,421 179
Hmm... Best way to trade this imo, would be if it sells off a bit then consolidates around $3.5 area (or lower. That it consolidates is the key factor). Buy before it shoots up again.

I assume you're familiar with the breakout pattern? Well, I'd be looking for that around that area. Be patient, and let price consolidate. Once a bottom forms, you'll have your cue to look for an entry. If done right, your risk should be low and you'll ride it all the way up to $6+. :)

Of course, this is only one scenario. It may very well keep shooting up if momentum is really strong, in which case I would look for a point where resistance forms, but isn't so much that it would cause a sell-off. I think this would be a trickier trade, and I'm not sure I'd recommend it to you...

All I know here by looking at the weekly chart is that I would not buy just yet. That area is an area of resistance, so breakouts are common in this scenario (implying sell-off -> consolidation before going back up. Too much stress to hold on while price sets up, and you can get a better entry later on anyway).

But this is just me...
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock