Dirty Tankers push further, Clean Tankers dither. Baltic Tanker Indices: Week 16 commentary.

by Dave Walker

CLEAN TANKERS

For Week 16 the Clean Tanker Index stayed within a tight 10-point range to fix at 576. The chart showed an interesting formation as it paused just above our mid-500s support ideas. A Morningstar Doji could be imagined but it’s a little messy for candlestick purists, being not much more than a spot (or blemish?) on the chart.

The RSI kept within neutral territory, but weakened somewhat in its divergence from the general downtrend. The lagging MACD entered negative values and continued to tail off, fading away from the signal line.

The chart formation and diverging RSI this close to our mid-500s support thoughts may be hinting at improvement in index fortunes. Should Week 17 prove more bullish, we’re watching the 625 – 650 area for any upside resistance. For the downside, the mid-500s may still hold some sway. It’s worth noting that the index is currently at the same value as the previous two lows in late 2018 and early 2019.


DIRTY TANKERS

The Dirty Tanker Index picked up where it left off for Week 16, opening at the previous week’s fix at 639. A more contained range saw the Friday fix at 653, with the index showing some more attraction to our 675-700 zone.

The RSI, still in the bottoming zone, lifted further to 16.50. The MACD curved away from the downtrend, angling a little further towards its signal line. The index has been technically bottoming for about a month now, so is it now paying attention to the indicators? (No laughing from the back row please – thank you.)

With the recent wavering in the index, the likelihood of reaching our 900-area upside resistance thoughts seems more distant. For now our eyes are on our aforementioned 675 – 700 region, which may be developing as a resistance zone.


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