For Week 22, the Clean Tanker Index shied away from our upside resistance thoughts around the 575 – 600 level, killing Week 21’s flash in the pan. With the short Week 22’s high at the 569 open, things deteriorated from there to a 540 close.
The MACD, which had previously taken an excursion towards the signal line and bullishness, flattened out to stay weakly bearish for Week 22. It still holds some negative value which may give a little support. We saw a lower RSI, which sank slightly from neutrality down to 33.84, not near bottoming territory yet.
Perhaps this black candlestick may give some downward momentum, or it may be just a small correction on Week 21’s exuberance. Either way, our 575 – 600 upside resistance seems to be asserting itself, and the 500 zone bears watching once again.
The Dirty Tanker Index consolidated a little in Week 22, retreating steadily from a 779 open to finish the short week at 754. After the recent two-week upsurge through our old upside resistance target, Week 22’s pause may hint at our thoughts of support in the 650 – 675 area from our Week 20 commentary.
We previously expressed thoughts that the index was finding some resistance in the 775 – 800 zone, and these ideas may have been borne out in Week 22. The RSI retreated to a less peakish 68.75, while the just-barely-negative MACD leaned a little off its bullish trajectory, both hinting at some mild consolidation.
There may be an upside target to be seen in that 775 – 800 region, but for the shorter term let’s see if our 650 – 675 support ideas gain some credence.