Wednesday, October 3, 2007

TA: DRYS and EXM

Click the figures to view bigger charts.
As the shipping sector is in a very nice up trend, the strategy here is to protect profits instead of finding an entry point or resistance level. I will only show 15 minutes chart in a 20 day range for DRYS and EXM. The first one is DRYS. This stock has a good up trend for several days and today it breaks down the up trend line. To be protective, the gap as indicated by the green area around $92 should be considered as a stop price.

This is a similar chart for EXM. EXM is having a harder time than DRYS. The up trend line is broken today too. There is also a gap above the current price level, which forms a strong resistance for this stock. Tomorrow, the region between the two horizontal green lines around $58 should be closely watched to see if it can provide some support.