‘D’ Shippers Running Out of Steam
- Posted by Greg Harmon
- on October 31st, 2011
Shipping stocks had a long run lower from their 2008 highs and have never really recovered. A bottoming process. This has many eyes on them looking oft that turn higher. With a false move off of the bottom in August many got steamed over. But they are trying again. Is this time for real or will they run out of steam? And Why do they all start with ‘D’?
Danaos, $DAC, has been moving higher off of a bottom at the beginning of October. Lately it has been stalling. A bull flag or another leg down? The Relative Strength Index (RSI) had moved up with price but is also falling and the Moving Average Convergence Divergence (MACD) is fading. As it sits on the 50 day Simple Moving Average it looks to head lower. Support comes at double bottom at 2.75.
Diana Shipping, $DSX
Diana Shipping, $DSX, also found a low at the beginning of October and is currently in a bull flag. A breakout over 8.50 has resistance higher at 9.22 and then 9.70. But the RSI has stalled without making it to 60 and is turning lower. The MACD is positive but steady. A fall off of the 50 day SMA and under the the flag at 7.80 has support lower at 6.80.
Dry Ships, $DRYS
Dry Ships, $DRYS, found that same October bottom and rose into a bull flag with a rising RSI. But the RSI also did not get over 60 and the breakout of the flag Friday is failing. The MACD is remains positive, but flat. If it can rustle up the strength to break higher again then resistance comes at 2.93 and then 3.27. This one is also sitting on the 50 day SMA with support under the flag at 2.00
If you want to know how I would trade these names and for more ideas and deeper analysis, use the Get Premium button above. As always you can see details of individual charts and more on my StockTwits feed and on chartly.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- This Fed Statement Should Be Important
- Stay Crafty When You Are Thirsty
- Premium Earnings 6-18-13 Part 2: FedEx
- Premium Earnings 6-18-13
- Risk On or Just Baby Steps to the Sleeping Bear’s Cave
- Arch Coal is Worthless
- Premium Earnings 6-17-13
- Top Trade Ideas for the Week of June 17, 2013: Bonus Idea
- Top Trade Ideas for the Week of June 17, 2013: The Rest
- Top Trade Ideas for the Week of June 17, 2013: The Rest Premium