On Tuesday July 5, 2011 I posted a chart on StockTwits about DRYS inferring it was in a possible sweet spot if it could hold above 3.92.
This same chart below (three charts in one) shows how DRYS has broken above resistance levels at multiple time frames. It is much larger than normal pic, so you may have to right click and open to view full size.
MACD daily signal line is flat to the moving average I use but positive. Weekly MACD signal line remains crossed for a second week- rising, though negative.
The 3.92 level is still very important to how I look at the chart relative to the latest low of 3.56 on 5/24/11. This level has been called out on a number of occasions in the charts posted to Stocktwits Chartly and I believe determines the intermediate trend direction.
Past analysis was done on DRYS with the expectation of a wave 4 correction off the 6.44 high of 12/13/10. When DRYS traded below 3.92, this negated this Elliott Wave count from being plausible.
Should we revisit an Elliott wave count in DRYS? Maybe, but right now the support resistance lines within the pitchfork formations are doing a better job of projecting direction than a wave count and we do not want to fit the theory to the data.
If price gets to 4.71 and 5.43 then DRYS could be re-evaluated from an Elliott Wave standpoint.