Diana Shipping Heads to the Downside

Diana Shipping (DSX), an ocean-going shipper of drybulk commodities, is well off its peak. Despite excellent third-quarter earnings, concerns about shipping rates and a possible economic slowdown have caused DSX to decline almost 36 percent from its all-time high set in October 2007.

It's not surprising that DSX's price has corrected significantly because the steep upside (chart) could not have been sustained for long.

Be cautious with DSX. The stock is at a key support level, which if broken, would mean that more downside is on the way.

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Posted November 25, 2007.