Supras surge – Baltic Dry Bulk Indices: 2019 Week 8 commentary.

HANDYSIZE

For Week 8, the Handysize Index gapped up at open and rose steadily to fix at 359, reinforcing our hopes of some attraction to the low 400s zone.

The RSI stayed heavily into bottoming territory at 15.86 as the negative MACD turned from its bearish dive and made overtures towards the still-distant signal line.

Should index strength continue building, some upside resistance might be encountered around the 500 area.

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SUPRAMAX

Gapping up 34 points at Week 8’s open the Supramax Index continued its impressive come-back to fix at 707, erasing over half of its agonizing decline and having a second 100-plus point week.

The RSI climbed into upper bottoming values at 34.36, while the negative MACD showed a positive hook towards the signal line.

Our previous (albeit pessimistic) comments on low-400s support appear to have had a little weight, with the Supras’ low at 414. Our upside resistance target so far remains the same as in our Week 7 commentary, around the 775-875 area.

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PANAMAX

Shadowing the smaller sisterships for Week 8 , the Panamax Index posted a modest rise to a 666 fix. (No, of course we’re not reading anything into that number…)

Showing a steady stair-stepping up from the 552 low, the index pulled back well above our support thoughts in the 400s.

Still in the bottoming area, the RSI rose slightly to 16.71 and the heavily negative MACD eased off its decline somewhat, both indicators hopefully hinting at upward pressure.

With continued strength there might be some resistance building in the 975-1000 zone, although this cautious index building may hint more at a lower target below 900.

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CAPESIZE

In Week 8 the Capesize Index ignored its Week 7 pause and dipped to fix at 545. This kept our eye on our possible support thoughts in the lower 500s zone, with grim thoughts of a target in the lower 300s.

The RSI is worthy of note as it rose to 38.23, diverging a little and offering hints of recovery unlike the MACD which veered not one iota on its downward slope.

Perhaps some low 500s support could be building – the Cape Index may get there well ahead of any indicators and ease our gloom.

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