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DRYS chart points to resistance

April 30th, 2008 · No Comments

We just looked at EFUT’s chart, which suggest that for the traders the party is in full swing, but it wouldn’t surprise us if in the next couple of days, parents return and things cool down for a little while. Our dry-shipper, in the mean-time, is hitting resistance. Look at the chart below.

In Februari we had a run-up to the high 80s, and that’s just what we had now. Also, RSI is turning south, so we do not expect DRYS to break this resistance in the immediate future. If you’re a trader, one could take some money off the table here.

The fact that it’s lower while the Dow is in triple digit territory, and might turn on possible disappointment about the Fed decision are further arguments to let it cool for a while.

Tags: DRYS