Correction imminent in DryShips Inc. (NASDAQ:DRYS)?


Shares of DryShips Inc. (NASDAQ:DRYS) last traded at $2.34. (NASDAQ:DRYS) performance year to date is -99.94%. The 200 day simple moving average is -99.93%. The 200 SMA is considered a major indicator by market analysts and traders for determining the long-term trend. The price in the market that coincides with the 200 day SMA is recognized as a key support when price moves above the 200 day SMA or resistance when price drops below the same.

Dryships Inc., based in Greece, is an owner and operator of drybulk carriers that operate worldwide.

DryShips Inc. (NASDAQ:DRYS) has been in the buzz for all the right reasons.

The Barchart Technical Opinion rating is a 88% Sell with a Average short term outlook on maintaining the current direction. Longer term, the trend strength is Average. Long term indicators fully support a continuation of the trend. The market is in highly oversold territory. Beware of a trend reversal.

The Exponential Moving Average is similar to a simple moving average but it uses a weighting element that exponentially drops from the recent data point. EMA analysis assesses the short term,5 days and 13 days, intermediate term that is 20 days and long-term 50 days EMA. These EMAs will give bullish indications when moving above trailing EMAs and below the latest price and vice versa. EMA alerts comprise crossovers that is the 5 day EMA crosses below/above the 20 day EMA and EMA convergences, 5 day EMA comparable to 13 day EMA. The 5 day EMA 3.55 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 9.57 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index is a momentum oscillator that can measure the magnitude of stock price and velocity changes. Momentum is computed as the ratio of plus price changes to negative price changes. The RSI assessment compares the prevailing RSI against oversold (30), overbought (70) and neutral (50) conditions. Alerts will apprise you when stocks retreat from overbought/oversold levels or breakthrough neutral (50). The current RSI is 28.48 suggesting a bearish price action.

DryShips Inc. (NASDAQ:DRYS) is all set to report its earnings on May 10/a. As per Zack’s analyst scores, DryShips Inc. (NASDAQ:DRYS) currently has a mean brokerage rating of . On a scale of 1-5, a rating of 1 or 2 would imply a buy, and a rating of 4 or 5 would indicate a sell recommendation. A rating of 3 would represent a hold on the equity.

As such, while we consider DryShips Inc. (NASDAQ:DRYS) represents a enthralling growth story open to several attractive markets, it would be fascinating to see how it works for long-term shareholders.

According to WSJ analysis, the shipping industry is showing signs of recovery. One stock to not be benefiting from this recovery seems to be DryShips. DryShips shares were on a fast descent down in Thursday trading as the bulk carrier’s 1-for-5 reverse split went into effect yesterday. Traders were not happy and to prove it, they sold hard. It’s the second split for the company in the past month. Eagle Bulk’s shares however had a modest close up yesterday despite any news.