Baltic Dry Shipping Indices: Week 49 technical commentary.

HANDYSIZE

For Week 49, the Handysize Index stayed hovering above our support band of 575 – 600, the same band we’ve been talking about for the past month or so.

Looking at the Week 49 candlestick chart, we can (barely) see that, although a touch higher, the index was contained within a tight 5-point range between 626 and 631.

From this point, we may be entering more nebulous territory.
Having spent some time in the 80s, the RSI tailed off through the 70s, but still remains in high country for the handies
at almost 75. The MACD sits very close to crossing into bearish territory.

However, we could see more upward motion after the recent consolidation. Our upside target in the 750 region is a possibility, and our support ideas in the 575 -600 area seem to be more robust.

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SUPRAMAX

The Supramax Index took a rest for Week 49, with barely a twitch either side of 944.

After recovering to the upper side of our previous 875 – 900 support zone, this rest has us hoping for a continuation to the 975 – 1000 region.

While things don’t appear altogether bullish, the RSI at just over 55 is on the high side of neutral. The MACD is still on the bearish side, lagging the recent move. There may be some room left to climb. Should the index make it to the 975 – 1000 area, then there’s a possible target around the 1100s, but this is early days yet. The thing to watch for is a downturn from this tiny blip on the Week 49 chart – the last pullback made a serious dent in possible support.

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PANAMAX

For Week 49 the Panamax Index gapped upwards, closing at 1588. It found itself back within the previous upward channel,
having taken a hard stab at our recent support ideas in the 1400s.

With this increasing volatility, perhaps the Week 49 chart could be taken as a set-up for another consolidation, given the wide gap up, but fairly limited range (1559 to 1588) on the week as a whole.

Creeping back into the higher levels, but still relatively neutral, the RSI gained to 62.02. The MACD continued its
creep back towards bullishness. The 1400s area could continue as significant support for a run at 1700s levels, but we’ll have to keep an eye on the wilder swings we’re seeing in the Panamaxes.

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CAPESIZE

As the Cape Index continued its surge in Week 49, the possibility of support in the 3500 – 4000 range grew. Closing the week at 4193, the index however resembled the Panamaxes with a sizable gap upwards. A relatively small range was seen for the week, in comparison to the lunge
in Week 48. This chart set-up requires watching to catch any upcoming consolidation.

In Week 48 we muttered about resistance at the 4250 level,
and the index is just below that point. Should our 3500 – 4000 support ideas kick in, perhaps we’ll see some consolidation in the Capes between these points.

The RSI wandered a little more into peaky territory, moving up to 75.32. The MACD, strongly bullish following Week 48, maintained its solid upward trajectory after the relative doldrums of previous weeks.