Dirty Tankers wake up; Clean Tankers at 2019 low. Baltic Tanker Indices – Week 19 commentary.

by Dave Walker

CLEAN TANKERS

Week 19 saw the Clean Tanker Index on the verge of previous seasonal lows, fixing at 516. Not straying far from its 514 open, the week’s high was 523. Giving a nod to our January 2019 support thoughts around the mid-to-low 500s, the index paused even as it reached a new low for 2019.

Ignoring any subtle hints, the lagging MACD followed the previous week’s dive and reached 2018-like negative values. The hint may be the RSI which diverged from the downswing to close above bottoming levels at 35.94. We spoke of RSI divergence before the recent 40-odd point drop, and note the similar patterns through the mid-2018 lows.

For now the Clean Tankers seem determined to test the low-500s for support, although Week 19’s action may suggest some minor consolidation. Should the Week 19 gap-down and the tighter range prove to be decent support, our upside resistance target would once again be our 625 – 650 zone from Week 17.


DIRTY TANKERS

Gapping up to open Week 19, the Dirty Tanker Index pushed strongly into our 675 – 700 resistance ideas and released some of the energy pent up in the strong bottoming indications. Our comments for the previous week included the phrase “energy to overcome the inertia”, which now appears to have kicked in.

Rising just over bottoming territory, the RSI reached 31.19 while the MACD turned more solidly towards its signal line and bullishness.

Overall, the Dirty Tankers may be gaining enough momentum from Week 19’s move to push through this zone. This could put our 900 target from Week 16 on the radar. Of course, while the index up-surge may be technically overdue, we wait to see if Week 15’s 675 – 700 resistance thoughts assert themselves.

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