by Dave Walker
Another small gain marked the Handysize Index for Week 22 with a fix at 398, up 4 points. Cautiously feeling its way, the index reached the threshold of our lower-400s resistance ideas from Week 20.
The Supramax Index retreated from our 775 – 875 resistance zone (from back in Week 7) and dropped 20 points in Week 22 to a 752 Friday fix.
Reaching for our 1350 – 1400 upside/resistance target, the Panamax Index reached 1340 before settling to Week 22’s fix at 1335.
For now our resistance target appears to be in reach, but the slowed index momentum is noticeable. It’s hard for us to ignore the signs of peakishness in the Panamaxes. However, as previously mentioned, our 1350 – 1400 target may become a consolidation zone rather than hard resistance.
The Capesize Index rose to a 1620 fix for Week 22, but not before touching a high of 1659 mid-week. This left us a small upper wick on Week 22’s candlestick, hinting at possible momentum loss.
With our 1800 – 2000 resistance target from Week 20 in sight and some of our indicators looking a little peaky, the head-scratching begins ( well, maybe more intense head-scratching). With possible shrinking momentum, do the Capes have the strength to treat this zone as a consolidation step and move on? (Note our 1000 – 1200 target from Week 19’s commentary ) On the other hand, are the Capes looking to pull back? The plot thickens…