DryShips Inc forms bullish "Ascending Continuation Triangle" chart pattern
Dec 05, 2013
Recognia has detected an "Ascending Continuation Triangle" chart pattern formed on DryShips Inc (DRYS:NASDAQ). This bullish signal indicates that the stock price may rise from the close of $3.60 to the range of $4.15 - $4.25. The pattern formed over 22 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The increasingly higher lows and constant highs within this pattern tell us that buyers are more aggressive than sellers, confirmed by a breakout through a resistance level to signal a continuation of the prior uptrend. An Ascending Triangle, with its increasingly higher lows and constant highs, indicates that buyers are more aggressive than sellers. The pattern typically forms because a supply of shares is available at a certain price, represented by the upper flat line. When the supply depletes, the shares quickly break out from the top trendline and move higher.
This bullish pattern can be seen on the following chart and was detected by Recognia proprietary pattern recognition technology.
Good points. I have bought a big position around $12.80 but sold it in the $15's thinking it would pull back but no such luck. So I sit and watch each day it goes up. But I was lucky in that I sold my entire position before the FDA news in the 40's. This is one difficult stock to figure out.
The selling has now exhausted itself. This stock will re-trace up from here. Longs that haven't sold will hold and shorts that haven't covered will now begin to cover on the way up. Turnaround bounce now begins.
This is when you want to buy. The bids drop on the market order margin call selling. After this first hour the stock should trade back up. I've seen this before.
This company is in a very high growth area (cloud) and should continue to trade higher for the near foreseeable future. It should trade back in the $100's from here.
It's easy and simple. Just place a GTC order at a high price (say $20 bucks) and your shares can't be borrowed. If they are already borrowed the broker has to call in the short to replace those shares. If everyone long did this the stock would go straight up.
Pretty easy. Right now call your broker and place a GTC order on your shares at a high price (Say $50 a share)
And those shares can't be borrowed as long as a sell order is in place. If everyone long would do this it would cause a tremendous short squeeze.
I agree. But for the last 10 Qtrs I have bought it at the close before earnings and I sell at the open the next morning. My return is off the charts. Until this fails I will continue to do it. No rhyme or reason. It just works.