For Week 9 the Handysize Index built up well on a little consolidation, having opened within Week 8’s range but climbing to a 393 fix. So far the action is in line with our previous thoughts, i.e. attraction to the lower 400s zone first kicked around back in Week 3 and a few times since.
So far for this up-move, our upside resistance target remains in the low 500s to upper 400s zone.
The Supramax Index gapped up once again in Week 9, although showing less exuberance than the previous two weeks. Closing at 759, the index slowed its uptrend as it approached our 775-875 upside resistance thoughts from Week 7’s comments.
Our eyes are on the 775-875 area for signs of resistance to the Supras’ recovery. The tighter range for Week 9 might be the first hint of it.
For Week 9 the Panamax Index left its baby-steps behind and surged, gapping up at a 683 open to a Friday fix of 863.
The RSI, even though climbing ended the week at a lower-end 28.93, and the still heavily-negative MACD made a more solid hook towards the signal line. This may signal some continued upward pressure is present.
Week 9 posted more gloom on the Capesize Index. A gap-down drop took the index towards our lower target region in the 300s, fixing at 383 on the week and dashing our hopes for some support in the lower 500s.
Interestingly the RSI continued to diverge as the index dropped, climbing to a neutral 40.76 to continue hinting at possible strength….somewhere. The MACD continued into negativity along with the index.
The divergent RSI has us watching for some recovery, but for now the Capes seem to be happily(?) on their way to a possible mid-200s support target. The hope is that some pull from the 500s may yet exist.