Stocks to Watch Tomorrow: DRYS, KEG, RBY, URRE

This morning, Morgan Stanley raised his price target for DryShips Inc. (NASDAQ:DRYS) to $9.50 from $9, while repeating his Neutral rating. Morgan Stanley reports that:

“Although we see attractive drill ship demand dynamics and view the proposed private transaction positively (as it would remove some uncertainty around drill ships financing); we remain Neutral rated given DRYS’s less positive record of managing fleet growth through the cycle and a higher risk premium given significant related party transactions.”

The stock surged 5.66% to $4.21. The 52-week range of the stock is $3.28-$6.95. DRYS has average daily volume of 19.94 million shares. At today`s closing market price, the market capitalization of the company stands at $1.83 billion. From the technical side the stock made a big move last week, it was able to move past 2 important levels of resistance. DRYS has now several bullish indicators: The MACD is above the center line and above the signal line, while KD line also show buy signal as %K line crossed on top of %D line. The volume over the past two trading days has been very strong so the market is certainly interested in it for some reason. In addition, the stock is now trading above 50 day and 200 day moving average, normally a bullish sign. The stock hit a high of $6.37 on the day, which is resistance for Tuesday’s continuation move. If the stock can break through this level, we should see another strong upside move. Keep DRYS on your radar.

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I’ve been looking at Key Energy Services, Inc. (NYSE:KEG) for a possible breakout candidate. The stock closed up $.21 today and looks poised to make another move on Tuesday. From my point of view, there are solid and consistent buyers here. KEG’s chart suggest that increased buy side activity could push share prices to much higher levels. The short-term outlook for KEG appears positive. The trend is definitely your friend here. The MACD also confirms the recent jump and RSI shows that there’s more upside to come. The stock could touch an upside target of $11.54 in the short term. Existing holders could remain invested. Let’s keep an eye on KEG as i think momentum will pick up.

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Uranium Resources, Inc. (NASDAQ:URRE) failed to continue its bearish correction today. A break above $3.98 could trigger further bullish pressure testing 4/4.22 region and could potentially end the downside correction.

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Rubicon Minerals Corp. (AMEX:RBY) was up on Monday and I am keeping it on the list for Tuesday. The stock has been strong, which leads me to believe that there are buyers and we could see another up move soon. I’m looking to buy the stock above $6.04.

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Other stocks to watch:

OceanFreight Inc. (NASDAQ:OCNF) caught my attention when I was quickly viewing some stocks and what actually caught my attention is the unusual increase in volume for the past 3 days. The stock price action doesn’t give much clue to what is happening in this stock, but do keep an eye on this stock.

Shares of Cell Therapeutics, Inc. (NASDAQ:CTIC) are still moving sideways and indicate a lot of indecision. Resistance at $.406 still holds and the resistance line from June still hasn’t been broken yet. For this week, still expect a sideways to downward movement for the stock.

Disclaimer: This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.

About Antonio Costa 324 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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