Gapping up and surging in Week 48, the Clean Tanker Index took a sizable jump to close the week at 792, displaying
enough strength to pop through our upside resistance ideas around 675-700.
Our thoughts that the index might have the strength to push through the 675-700 resistance now seem a little tame. Overall however, it remains to be seen how sustainable the Week 48 spike is. It may be resilient enough to retain the 675-700 area as support, but as we said previously, let’s see how peakish the Clean Tankers might be.
For Week 48 the Dirty Tanker Index continued its apparent spring-winding motion, maintaining its position midway between our 1200-1225 upside resistance target and our 900-925 support ideas. Closing at 1132 in a fairly tight range, the index left a barely-visible upper wick on the Week 48 candlestick.(The week’s high at 1135)
Further up-moves would be challenging 2014 highs; would anything higher mean a return to those heady pre-2009 rates?
Lofty dreams indeed.