In Week 7 the Handysize Index saw its first bright spark in a long while, pulling up from the depths slightly to fix at 315.
Whether this area becomes a support zone remains to be seen, but with the over-run RSI in strong bottoming mode at 6.23, we can at least hope.
For Week 7 the Supramax Index showed a much-welcomed resurgence, with an all-positive stretch to close up at 560 from a 429 opening fix. Our “index easing” comments last week appear to have been…ahem…taken seriously.
The MACD followed the pop-up and turned a little off its bearish path, as the RSI climbed to a still-bottomish 21.02. Our previous gloom-laden mumbling included some hope for support in the lower 400s, although the RSI levelling-off we mentioned back in Week 5 may have been the hint at this welcome come-back.
Such thoughts may seem premature but should this possible turnaround consolidate, our upside resistance targets are around the 775-875 range.
Having shown the first white candlestick in Week 6, for
Week 7 the Panamax Index gapped up and modestly rose to a 624 fix.
With the index turning away from that abyss for now, the likelihood of support at current levels is possible with upper resistance around the 900-1000 zone.
A tiny range marked the Capesize Index for Week 7, staying in the low 700s to close at 727 between a high and low of 736 and 707. Rare for the Capes indeed.
The RSI continued to point itself towards bottoming territory, but
it’s not quite there yet. The negative, heavily lagging MACD will give little indication of recovery at this point and is a little out of the picture.
In our Week 5 commentary we had hopes of support in the 500s.
With Week 7’s rest, we’re eyeing that region again but with hopes of any recovery to start above that point.