by Dave Walker
A fix at 586, after a gap-down at open and a tighter range, marked the Clean Tanker Index for Week 15. After pushing upwards through our 675-700 resistance ideas only to retreat, in Week 15 the index leaned a little more towards our old mid-500s support thoughts from January.
Even as the index fell the RSI continued to diverge, reaching up to 42.01 and hinting at a possible break in the down turn. The MACD slavishly followed the index of course, and turned away from its bullish reach towards the signal line.
The mid-500s area continues to be a target for now, but we’re watching the RSI divergence with some interest, given the tightened range in Week 15.
For Week 15 the Dirty Tanker Index took a hop upwards. A near-30 point run fixed at 639, eclipsing Week 14’s range. Amongst the bottoming signs, perhaps our gloomier thoughts of support in the mid-500s have been pre-empted by some attraction to the 675-700 zone.
The RSI at least rose out of single digits, but stayed in heavily bottoming territory at 11.97. With such a heavy downturn recently the MACD charged further into negative values, with just a slight divergence to acknowledge the index pause.
Should support strength develop in our closely-watched mid-500s zone, we may see further attraction to (or possibly some pushing through) the 675-700 area. Our next upside resistance target (should such wild ideas occur) is in the 900 region.