by Dave Walker
Fixing at 527 for Week 21, the Clean Tanker Index rose off our previous low-500s support ideas, gapping up and showing an 11-point gain.
While watching our low-500s target/support thoughts on the downside, we also made previous comments on resistance building above present values. It’s possible we may now see some upward testing of that area with the index rise. Presently our upside resistance target is around 550 – 575.
Still falling away from our Week 15 675 – 700 resistance thoughts, the Dirty Tanker Index continued its retreat in Week 21. Fixing at 665, a small gap down at the open preceded the week’s decline.
Our RSI fell to 28.08 and closed on bottoming territory once more. The MACD strayed a little from its bullish path to the signal-line as the index faltered, both indicators hinting at possible consolidation.
The recent weakness may have consolidated our 675 – 700 upside resistance ideas, although the Dirty Tankers haven’t wandered far below those values. The possibility of some sideways movement is there, although we wouldn’t rule out more attraction to that 675 – 700 area and another attempt upwards.