DryShips Inc. (NASDAQ:DRYS) is one of those stocks which are hitting or testing their lifetime lows but what makes that more dangerous is the fact it is a bull market for the broader market. When market indices like S&P 500 is just 2% off of its all time high, a stock hitting all time low is a sign more repelling than most diseases. This ocean transportation service provider for dry bulk and petro cargoes is such a company.

Get a free technical analysis of DRYS.

DryShips Inc. (NASDAQ:DRYS) had reported a weaker than expected fourth quarter result last month. The revenues at $598.41 increased more than the expected $550.38 million but the real disappointment came in the form of non-GAAP earnings of $0.02 against the expectation of $0.05. For the full calendar year of 2014, the net revenue came at a loss of $47.5 million. The company has a cash reserve of $739 million but the debt of $6 billion can be back-breaking and perhaps that is being reflected in the charts.

The price charts show just one direction for the stock and that is down. The last part of 2013 and the early part of 2014 saw an attempt to rally and recover some of the losses but the top soon took the form of a bearish Head & Shoulders pattern and crashed vertically in the second half of 2014. The first two and half months of the current year have been spent in retesting the lifetime low at $0.76 registered in 2014.

With the volume shrinking in the latest selloff, showing a bit of bearish exhaustion, bulls can enjoy a bit of hope but, as shown on the chart, any possible rally is expected to face very strong selling pressure from the area around $1.50. As no solid bottom formation is visible yet, investors may wait and watch.