Baltic Dry Bulk Indices: Week 6 technical commentary.

HANDYSIZE

For Week 6, the Handysize Index continued to test our support ideas in the 525 – 550 range, closing well into that area at 526 for the week.

In what might be a ‘tell’ for this recent downturn, the RSI, as we mentioned for Week 5, is well into its low zone. A single digit RSI is something to be watched; 8.29 in this case.

The MACD is of course firmly bearish, but hasn’t yet
got into the zero zone or below yet, however it’s close.

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SUPRAMAX

As with the handies, the Supramax Index took another downswing in Week 6, closing at 825.

The next couple of weeks may begin to show less gloominess, if our 750 – 800 support target holds.

The RSI is approaching low-end territory at 23.91, and our MACD has just tested the zero point; hopefully these are all signs of brakes being applied in this latest downturn.

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PANAMAX

The Panamax Index took a deeper excursion downwards for Week 6, closing at 1250. We had a eye on the 1250 point for signs of bearishness, but with no breakthrough yet there remains hope for some support in this area.

Week 6 appeared as a deeper adjustment in the overall
flattening out of the Panamax Index since late 2017.

The RSI continued in the neutral zone, and the MACD continued in bear mode but still well over zero – giving little indication. Would casting an lifeline to the Capesize Index help a little?

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CAPESIZE

In marked contrast to the other indices, for Week 6 the Capesize Index continued in the tight range seen in Weeks 4 and 5. Closing on a uptrend week at 1790, the Capes appear to
be taking the rest we were hoping for back in Week 3.

Still within our “attraction zone” of 1500 – 2000, we may see a step back from the abyss with our thoughts of a 1200 – 1250 support zone possibly firming up.

In the mid-30s region, the RSI is barely on the low side of neutral. Our MACD however is well into negative numbers, perhaps giving some backing to those support ideas.