by Dave Walker
The Clean Tanker Index took a positive turn on Week 17, eclipsing the previous week’s range to fix at 584. Our ideas of index optimism were somewhat reinforced but we won’t jump to conclusions yet, given such a small week 17 range. All the same, the chart could still have a very messy Morning Star Doji forming.
The RSI stayed in the neutral zone, rising slightly to 41.23 to maintain its diverging attitude. Following the index a little, the MACD‘s downtrend eased very slightly to more-or-less parallel its signal line.
Overall, the slight bullishness has the index consolidating around the pre-spike lows of Weeks 9 & 10. Even with a diverging RSI, this slight recovery just above our mid-500s support thoughts may be tempered by possible resistance in the 625 – 650 zone.
The recent enthusiasm in the Dirty Tanker Index fizzled a little in Week 17, with the index fixing down overall at 640 after seeing a low of 635. Some consolidation may develop as a result of this stumble, and our wild ideas of a reach to 900-zone values are growing dimmer.
Still in nether region values, the RSI rose to 18.43 as the MACD kept on a more shallow trajectory, gradually closing on its signal line. Both indicators hint at weakening bearishness, but as with recent weeks the index has paid scant attention to them.
The index rise towards the end of the week was encouraging however, and as before we’re watching our 675 – 700 target for possible resistance. Should the Week 17 weakness persist, our mid-500s support thoughts from back in Week 12’s comments are always waiting for us.