Baltic Tanker Indices: Week 4 technical commentary.

BALTIC CLEAN TANKERS

*Our last comments on the Clean Tanker Index were for Week 49, 2017.* Towards 2017 year-end, our hope was that the index would reach the low 700s, and indeed it did. The Week 48 – 49 gap-up had us a little cautious, looking for a snap back down. Week 51 gave us an isolated gap-up in a tight four-point range just before the festive break. Right after that warning came the drop.

The first weeks of 2018 have given us the pull-back we were cautious of, and in Week 2 the index broke through our previous support ideas around 625. For Week 4, the index turned from the mid-560s and recovered to a close of 623, healing the gap down in Week 3. (Healing our bruised ego perhaps?) Maybe we have a zone of attraction forming around the 625 mark, which the index has been swinging around since mid-September 2017.

Our MACD is treading some neutral ground after the recent whipsaw index action, just barely into bearish land for Week 4. The RSI has taken a surge up to 56.76, following the index. We’ll see if next week brings it back into the swing zone again.

———————————————

BALTIC DIRTY TANKERS

While we were all wrapped up in our festivities, the Baltic Dirty Tanker Index took a 100-point saunter down into the high 600s, finishing off Week 4 at 682.

Our last comments were things like “very slight bearishness” as the MACD made motions in that direction. What a difference a week makes…

For the first few weeks of 2018, the index has stayed in the high 600s/low 700s area with a now-lagging MACD in bearish territory.

The interesting thing to watch is the RSI, now at a low-end 19.89. The usual point taken for bottoming action is around 20. It will be interesting to see what occurs in the next few weeks. At these levels, we might see some support in the 650 region, with possible resistance around our previously-mentioned 750-800 range.