DryShips Technical Analysis (NASDAQ:DRYS)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. Just by looking at the DryShips stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the DRYS stock chart which creates a trading signal.
See DryShips bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. The technical analysis form of DryShips stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
DryShips Moving Average:
DRYS stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of DryShips chart patterns after the calculations remain the same. The 100 day moving average of 36.26 is above the last closing price of 1.35. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $1.62 is above the price of $1.35.
DryShips Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like DryShips. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $1.35 is in the upper range of DryShips bollinger bands.
DryShips Moving Average Convergence Divergence or MACD:
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The DryShips MACD line is below the signal line.
DryShips Relative Strength Index:
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of DRYS stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .