For Week 8, the Clean Tanker Index tailed off from open to mid-week, and then recovered a little to finish off at 646.
The 625 – 630 zone being our upper resistance idea, Week 8’s action has tried to push through this level with a small amount of success.
If this mild strength continues we could see the 625 – 630 area becoming support. However, the index over the past month has been shrinking its range in the type of activity that can presage a move. Whether this translates to the index using the 625 – 630 band as a springboard remains to be seen.
The RSI, staying in the low 60s while this gentle uptrend has played out, is not yet close to “topping” territory. The MACD
took a small detour towards the signal line, hinting at a little bullishness. Maybe we could see a patching-up of the downtrend gaps seen since the beginning of this year, but we haven’t seen a truly positive break-out from the 625 – 630 resistance zone yet.
The Dirty Tanker Index continued to dribble along in Week 8, just over our support band of 625 – 630. Closing the week at 646, the index seems reluctant to sink to the lows of mid-2017.
The last couple of weeks’ candlesticks have hinted at this reluctance, testing the downside waters, but finishing up in positive territory.
The RSI, still in the “bottoming” zone, came up a little to 22.04. The MACD, in the negative numbers since Week 3, weakened a little in its downward trajectory. With the weak consolidation seen over the past couple of weeks, maybe support is building, but we’ll keep a weather-eye open for any testing of the 625 – 630 zone.