by Dave Walker
With a near-straight line decline in Week 14 the Clean Tanker Index plunged to a 614 fix, making our Week 13 comments about slowing momentum and 675-700 zone attraction a little – *cough* – understated.
After the recent surge, a bungee-cord effect around that 675-700 zone appears to have kicked in. The MACD turned away hard from its bullish run at the signal line as the RSI flirted with bottoming values, reaching 31.89.
Week 14 continued the down-trend for the Dirty Tanker Index, with a gap down and steady decline that flattened out near week’s end to a 617 fix. The slightly tighter range on the week has us watching our 675-700 support ideas for some influence.
Now that the index is tapping on the lows seen in early 2018, the heavy weakness has us eyeballing the mid-500s region for possible support as we mentioned in Week 12’s commentary. Our 675-700 zone may play a part in any recovery, but at the moment the index appears determined to test these lows.