Clean Tankers snap. Baltic Tanker Indices: Week 14 commentary.

by Dave Walker


CLEAN TANKERS

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.

With this marked turn in the index away from our Week 10 resistance target, we may see some snap-back. However, we’re watching our old mid-500s support ideas from Week 3’s comments just in case.


DIRTY TANKERS

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.

Meanwhile the index continued to thumb its nose at the indicators. As the RSI fell into the lower single digits at 4.55 the lagging MACD faithfully followed the index plunge into the cellar.

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.

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