What Fundamentals? Baltic Tanker Indices – Week 25 technical commentary.

CLEAN TANKERS

In Week 25 the Clean Tanker Index continued its journey into the lower levels of our 500 – 525 support zone, closing at 506 on a relatively small 5-point range for the week.

The MACD stayed its course of weak bearishness, slowly pushing further into negative values. The RSI continued in neutral territory, as it has for the past couple of months or so, while the action in this index slowly shrinks in on itself.

After retreating just short of our 575 – 600 upside resistance in Week 22 the index seems once again poised to test the 500 level. However, Week 25’s small range may hint at strengthening support around this area. Chatter of consolidation in the product tanker business may have some effect, but that would mean we’re acknowledging those nasty fundamentals again.

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DIRTY TANKERS

The Week 25 action in the Dirty Tanker Index seemed to echo our previous thoughts of consolidation in the 675 – 750 area,
with the index rising to a 745 close from the 736 open: perhaps a little OPEC effect too, with Friday’s small boost after a flat mid-week spell in the index.

Nevertheless we’re left with a RSI pushing into peakish values once again, and a lagging MACD as it continues in bullish mode well behind recent index action. Overall the index appears to be holding above our 675 – 750 support / consolidation ideas, and our upside resistance target is now in the 775 – 800 region.

With this range in mind, we’re watching how the post-OPEC meeting dust settles. There….now we’ve spoken of the f-word (fundamentals) twice in this “technical” tanker commentary; our apologies.

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