by Dave Walker
Finally showing less reluctance, the Handysize index surged with its cousins in Week 28, gapping up and rising to a 472 close. The index is now within our Week 21 450 – 475 resistance thoughts.
Whether our peakish signals hold sway or not remains to be seen in the face of the dry bulk surge. Will the Handies follow suit and use the 450 – 475 band as a stepping stone or will they consolidate? Curious eyes are watching.
Another gap-up and 50-point surge marked Week 28 for the Supramax index, showing a wider range and fixing at 879. Our Week 7 775 – 875 resistance zone has now been covered by the Supras in this latest run at the barrier.
With the Supras now at the upper end of our 775 – 875 resistance thoughts the peakish-looking signs are there, but as with the other indices the general dry bulk sentiment is positive for now. As before, we watch for possible consolidation around this area, or at least a little rest.
Going from strength to strength, the Panamax index gapped up and hit 1945 after a 250-point surge. Our tentative upside target of 1700 – 1750 registered as a mere pause earlier in the week.
The rapid index movement makes possible targets hard to pin down as we plod through the charts, but a 2300 upside target may not be out of the picture for the Panamaxes. Our previous 1700 – 1750 target where the index paused briefly may become consolidation support should peakish signs take over.
A positive Week 28 for the Cape Index was marked by some slight weakness mid-week before rising to fix at 3541.
With the Cape index now regaining similar heights to mid-2018, what’s next? We’re still watching our old 1800 – 2000 resistance zone (weak resistance at that) as possible support in a Capesize consolidation. A 3800 – 4000 target on is our horizon. The slight mid-Week 28 pause in the uptrend may be a tell, but we won’t grasp at that straw. The Capes will always humble their observers…