Baltic Dry Indices Commentary – Week 32

HANDYSIZE:

Imagine a gaggle of grumpy children being forcibly dragged around a store by an enthusiastic (or depressed) parent, namely the Capesize Index.

Sometimes, it seems that the Baltic Handy/Supra/Panamax indices can be characterized that way.

Going to the ridiculous, we might even say the Handy Index resembles the worn old teddy-bear, passively bumping its moth-eaten way through the world, attached to said grumpy children.

That went too far……anyway, to business.

Looking at the BHSI candlestick chart above, the oscillating motion of the past months is narrowing, gaining a comfortable spot around the 500 mark.

Perhaps we might see some weakness yet on this particular mini-downtrend, with the Relative Strength Index almost in neutral territory, and the MACD still showing a little downward bias. We shall see how that pans out. This Handy teddy-bear might yet find its comfort zone.

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SUPRAMAX:

The same can be said for the Supramax Index, following a similar pattern, naturally.

Seemingly trying to find a happy spot in the 750 – 800 range,
there may also be a little weakness still to be seen. However, although the RSI is drifting around neutral in the 40-ish region, the MACD shows a possible crossover to the bullish side coming up.
We shall see what transpires this week.

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PANAMAX:

Meanwhile over on the Panamax Index, with far less exuberance than the Capes have shown, we could be looking at a little bullish consolidation.

The 1100 area has provided some solidity since the end of June, and we may see continued climbing above that level in the next week or two.
The MACD has crossed into somewhat bullish territory, and the RSI has climbed to 60 so far. Some further upward pressure could be at work.

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CAPESIZE:

A four-month high in the Capesizes?

Yes indeed, and maybe more to come if our technical indicators can be trusted. (Don’t answer that…) The Cape index up-surge is knocking at a level not seen since mid-April. It’s possible that this upward surge may lay down some support in the 1650 – 1700 region, essentially the moving average seen since the beginning of this year. As with the Panamax Index, the MACD has crossed into possible bullishness, and the RSI is pushing 60.

Onward and upward….for a little while perhaps. Watch this space.