DAC trade ideas
short the Freight companiesDue to sea containers being locked in different parts of the world, the export from asia is disturbed. A 40foot container in November cost approximately 2k USD, now sold 16k USD.
This fundamental push aligned with current technicals on the chart makes me believe the DAC will see a drop sooner than later.
$DAC ChartChart just completed a 5-3 Elliot wave pattern, followed by a double top and it looks to be completing an ABC wave pattern now which commonly follows the 5-3 pattern. I would expect completion of the C wave and then a stronger move past the channel resistance of 9.29. Keep in mind that the pattern of the ABC wave is neutral right now as it appears to be trading in a channel, so a bear break below the 7.65 support is also possible, keep a tight stop loss for that potential move.