Our dry bulk shipper is starting to pick up steam. Here’s a look at Diana Shipping (DSX)
I’m still very bullish about this chart. What we’re doing here is, we’re working off a real big, basically like a blow off, but if you look at the weekly chart you can see that the uptrend is pretty much intact.
So here’s the thing on this one; the company does not announce earnings until May 21st, that’s quite a while from now. So there’s really no foreseeable catalyst to impact this chart technically, don’t foresee a lot of selling, perhaps we’ll see some buying, the trend is up, that’s the main deal here.
The trend is up; 50-day moving average is trickling along here, so it’s wrong to short this. Also this has already occurred, I mean this stuff has come and gone and what’s happening now is, buyers are reaching up, they’re gabbing the stock, which is why the stock on this moving higher, but I think it’s going to take a while for all this supply, created by all these folks who bought at higher levels, they’re going to be wanting to sell their stock, a lot of them will be wanting to sell as it reaches up to break even.
Nobody likes holding a loss, particularly if you bought up here, held it for a really, really painful drop down here. What you’re going to look to do is you’re still holding the stock; you wish you weren’t. As the stock trickles up, as more and more folks buy it, you’re going to be more and more eager to sell it. So ultimately you’re going to sell. Once all of that selling has run its course this stock will just continue to drift higher.
I still have a $14.00 price target on this stock. That would really be my signal to take profits, when the stock gets up here to about $14.00, which is where it was in late 2010, then that’s when I would look to take profits on this stock. Until that time I think you got to just stay long, deal with some of the volatility like this, and just be patient; I think Diana Shipping ( $DSX Diana Shipping Inc. ) is going to work.