by Dave Walker
$BDRY profile: ”The Fund’s investment objective is to provide investors with exposure to the daily change in the price of dry bulk freight futures, before expenses and liabilities of the Fund, by tracking the performance of a portfolio consisting of a three-month strip of the nearest calendar quarter of futures contracts on specified indexes that measure rates for shipping dry bulk freight.” Source: drybulketf.com
$BDRY Forward Freight Agreement weighting: Capesize: 50%, Panamax: 40%, Supramax: 10%.
Week 20 saw $BDRY retreat slightly, in line with our $12 – $14 resistance ideas, to close at $11.84, down from a $12.41 open.
Our RSI took an interesting streak upwards to 55.04 while the MACD approached positive values, although weakening a little from the Week 19 retreat. The continued charge of the RSI could suggest some building strength, but the overall feel hints at possible consolidation as momentum fades.
It remains to be seen if $BDRY is taking a rest or will move on to greater things. A quick glance at the weekly Baltic Capesize Index below (50% BDRY weighting) shows a slight loss of momentum, although within a generally positive Week 20.
Downside support may still be in the $9.00 range for $BDRY, with unconfirmed support possibly building around current levels. Volatility in dry bulk shipping indices being a fact of life (there, we’ve given a nod to
those nasty fundamentals again), we can always cast a hopeful eye at the iron ore price and China’s lowered port stockpiles.
Week 20 Baltic Capesize Shipping Index:
Week 20 Baltic Panamax Shipping Index:
*Disclaimer: Superior Maritime does not hold any stock in $BDRY.