Dryships have a superb run from the price of around $4.00 to $6.50 in the past 2 months. That is a whooping gain of more than 55%. Those who have follow my buy recommendation have profited from this trade tremendously.
After a big run up for the last 2 months, this stock is currently reversing its bullish trend. It is now trading at the price of $5.00 as of yesterday Jan 21st 2010. The good news is, if you are still holding on to this turbulence ship, it has found it support at this level $5.00. If it can maintain its price at this level, I believe this stock is a good buy as more good news on its drilling division is announced.
However, if Dryships do not consolidate at this level but break the 1st support of $5.00, then it is a big sell going forward cause it might bring the price back to the $4.00 level which is about 20% drop from the current price of $5.00.
I currently hold no position in this stock as I am now heavily invested in Cirrus Logic. If I am able to free my capital after I sell off Cirrus Logic, I will consider to buy this stock at the $4.00 level, as I believe that this stock have a chance to double or even triple its share price once the final 2 drillships secure new contract.
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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.
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