DRYS – Forming A Wedge

DRYS has formed a wedge and currently testing its 20D & 200D MA. I will accumulate DRYS shares if it retraces back to $6.20 to $6.50 price range (wedge support). $6.00 is another very strong Fibobacci support level. 

The probability of the stock price goes below $6.00 is low because the global economy is recovering and the Baltic Dry Index (BDI) is showing an uptrend. If this upward trend continues then that will be the proof that the economic uptrend will continue into 2010. The BDI is a great indicator for the demand of Dry Bulk goods (Coal, copper, lead, silver etc.). Increase in BDI equals increase in global economic activity. That also indicates the Dry Bulk Shipping Companies will have a better earning performance in the next few quarters.

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