Diana Shipping (DSX) Could Break Out to $14 or More Above Current Pattern - Cramer

Diana Shipping Inc. (NYSE: DSX) is trading notably higher Wednesday following a mention by Jim Cramer Tuesday night.

Cramer featured Diana Shipping during a segment of "Mad Money" which examines the stock from technical perspective. Joining Cramer was associate Dan Fitzpatrick.

Fitzpatrick used a weekly chart for Diana Shipping, noting that shares have been tending lower since 2008 with its 40-week SMA a ceiling to upside. A reversal was noted last July and shares broke above the pattern last January, moving up 17 percent in the span of a week.

The early January event also was when Diana Shipping's 50-day SMA crossed above its 200-day SMA, known as a "golden cross" or "bullish crossover" pattern. The 50-day SMA now serves as a floor for the stock movement.

Cramer agreed, saying any pullback in Diana Shipping should be taken as a buy signal. He thinks the shipping segment is finally mounting a turnaround and if Diana is able to break out of its current pattern than it might be able to get back to the $14 level, a 47 percent to Tuesday's close at $9.51.

Shares are up about 9.5 percent.

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