by Dave Walker
In a near-imitation of the previous week, Week 27 for the Clean Tanker index was a quiet one, seeing a fix at 542 on a limited range. The index loitered around the level of its recent jump amid speculation over US East Coast refinery hiccups.
Meanwhile, back at the chart screen, our RSI dropped further to a bottomish-looking value of 23.14. The MACD, still influenced by the recent index jump, continued pushing towards a bullish signal-line crossing.
The Clean Tankers continue to give the impression of building strength even as the index rests for the moment. Our 625 – 650 resistance target is still on our radar however, and we wait to see what influence it may have.
Calling a retreat for Week 27 the Dirty Tanker index dropped almost 30 points. Turning back once more from our 675 – 700 resistance ideas from back in Week 15, the index declined steadily to fix at 650.
As the MACD weakened slightly after its bullish signal-line crossing, the interesting note was our RSI which continued upwards to hit 50.37. Too early to call a possible divergence, all the same there may be the hint of underlying strength in the index.
Whether possible underlying strength will boost the Dirty Tanker index is a mere guess at this point, but we continue to watch our 675 – 700 resistance zone which has proved resilient so far. When weakness has set in, support has been around 625 – 650 in the recent sideways motion, but watching for developing RSI divergence may be worthwhile.