by Dave Walker
In Week 27 the Handysize index rose off the flat previous week to fix at 448. With the Handies seeming so reluctant, the overall boost across the Baltic complex dragged the index along with it. A slight slackness early on was cancelled out by a steady climb through the rest of the week.
Knocking on the door of our 450 – 475 resistance ideas from Week 21, we wait to see if the reluctance in the Handies becomes more pronounced, or if the index steps up and moves on to greater heights.
Another gap up at open and surge to an 820 fix marked the Supramax index for Week 27. Well within our 775 – 875 resistance band now, the index rode the general dry bulk surge.
With some of our other indicators showing peakish signs, we’re watching the Supras for another consolidation around our 775 – 875 resistance thoughts. With the general optimistic sentiment in dry bulk these days, a stepping-stone effect might be seen in this index.
An impressive surge was seen in the Week 27 Panamax index, with a near-350 point jump to fix at 1665. Continuing the bounce off our Week 17 975 – 1000 support thoughts, the Panamaxes cut solidly through our 1350 – 1400 resistance ideas with barely a pause and put most technical indicators in our arsenal to shame.
With the massive rise in dry bulk positive sentiment, Panamax owners may be enjoying a little sunlight. The latest move could turn our 1350 – 1400 resistance target into support as the index moves on. We have a tentative upside target around 1700 – 1750 which the index may have reached already, if we only dare look.
A heavy upward surge brought the Capesize index to a 3346 fix for Week 27, continuing its surge after giving a passing nod to our 1800 – 2000 resistance target from Week 20. For the moment, all the fundamental factors at play in iron ore and coal movement have put paid to we simple followers of scrawled lines on a chart.
A target for the Capes? Well may you ask. At this level of volatility, the Capes are usually well ahead of any mere technical indicator. As we vainly hang on to our charts, our 1800 – 2000 zone may become support for this latest move with the possibility that the index may consolidate around present levels.