Dianna Shipping hit a recent high price ceiling for the third time this week. I love "triple tops" precisely because they are rarely the top. There is no reason for a price to hit a high price three times. The first time is because the price just got too high for the times. The price declines and those that missed the move buy, and those who need more stock buy the dips. The price rises back to the high. People sell at previous highs, expecting a range. And short sellers get active. The price declines a second time due to traders and those who erroneously bought the first rally wanting to get out at even.
If the price makes it to the high of the range for the third time a range is defined, at least. And the trend has changed if near a bottom.
My experience is that the stock will seek to break out above the range after hitting the top three times.
In this stock I notice a time period of about two months between the larger moves. I expect this time to shorten now.
This company is a beneficiary of the price of dry bulk shipping rates as reflected in the
Baltic Dry Index
control risk,
gh
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