Taking an upward path for Week 6, the Clean Tanker Index refuted our pessimism and almost canceled out Week 5’s downward turn. “Dark Cloud Cover” indeed….. A relatively slow mid-week period was complemented by a 11-point boost on Monday and a 13-point boost on Friday, seeing a close at 632.
This brought the index up to test a possible mild resistance area at 625 – 630. The MACD, just barely into bearish territory, showed a slight bias towards bullishness with Week 6’s move.
The RSI moved into the low 60s with the upward move, entering an area that has given us downturns before. This could be in keeping with the upper end of the 500 – 750 range we’ve been seeing for the past while.
For Week 6, the Dirty Tanker Index closed at 642, continuing its downward trajectory.
So far, the index is still within our ideas for possible support in the 625 area. The MACD once again is well below zero in its lagging way, but not near historical turnaround levels yet.
Our RSI is now down at 14.4 , well into possible bottom territory, but the dirty index tends to go to extremes with
this indicator. With a “normal” range from 20 to 80, this index has seen upper values in the 90s and lower values in the teens. Patience may be a virtue in this neck of the woods.