Capes pause at our target, Handies build further. Baltic Dry Indices: Week 24 commentary.

by Dave Walker


HANDYSIZE

Rising to a 420 fix for Week 24, the Handysize Index pushed further into our low-400s resistance ideas.

Our RSI dropped a little more to 49.69, not far above neutrality. The MACD steepened its bullish climb, reaching further from the signal line.

Continued strength in the Handies had us looking at a 450 – 475 target in Week 21 and may still be in the cards with the gathering index strength. Our Week 21 ideas of support building just below current levels may also be borne out, but we’ll see.


SUPRAMAX

The Supramax Index gave us a flat spot in Week 24, spending its time in a tight 7-point range to fix at 716. The index action gave a nod to our 700-725 support ideas from Week 20, and our more recent thoughts in the 700 – 715 range.

Our RSI eased its fall as it entered neutral values, reaching 39.37. The MACD continued almost level, converging on its signal-line.

With the Supras pausing around our 710 – 725 support thoughts from Week 23 , there’s a chance the index may channel sideways between that area and our 775 – 875 resistance zone. Stay tuned and be on guard for index weakness in these volatile times.


PANAMAX

The Panamax Index continued its fall in Week 24 with an opening gap down and 56-point fill to an 1131 fix, still retreating from our Week 19 1350-1400 resistance and confirming our thoughts of peakishness.

Our RSI reached 65.82, still in the peakish zone for the Panamaxes while the MACD hooked towards the signal-line, weakening with the index decline.

We’re keeping an eye on our Week 17 support thoughts around 975 – 1000 as the Panamaxes fall away, and looking for any signs of braking action on the index.


CAPESIZE

Week 24 in the Capesize Index chart gave us a dark “hanging” candlestick, the index pausing at the bottom end of our Week 20 1800 – 2000 upside resistance target to fix at, yes, 1800.

Once again our RSI reached further into peakish territory for the Capes, easing slightly as it climbed to 82.21. The MACD eased very slightly in its rise, still keeping to the bullish side of the signal-line.

While watching our previous consolidation point around 1000 – 1200 for index pull-backs (note the small hiccup around Weeks 18-19), the Week 24 pause could be a stair-step that boosts the Capes further. That is, unless our 1800 – 2000 resistance zone displays further strength, given some of our peaky indicators.


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