Dry Bulk FFA: Panamax Index- The current trend remains bullish in Dry Bulk Market,International Shipping News 15/09/2017
The current trend remains bullish, however recent upward moves have stalled between 9-14 days. 10 upward days would suggest another corrective move is due soon. • OCT – Currently making new highs within the bull trend. However, a divergence with the short period RSI would suggest slowing momentum and another corrective move could be upon us soon. • Q4 – The trend remains technically bullish above USD 11,870. Below this level the trend becomes neutral. Caution due to another divergence with the RSI. • Cal 18 – A technical breakout above USD 9,894 would suggest that resistance should now act as a support. Bullish above USD 9,750, another divergence with the RSI, however this is smallest of the divergences. Panamax Index Weekly Support – 10,812, 9,538, 9,224 Resistance – 12,478, 12,987, 13,877 Resistance USD 12,478 Support USD 9,538 Stochastic at 88 The general theme of the current trend that started in June 2017 seem to be 2-3 weeks of upward moves followed by as small corrective phase. We are currently in week two of the current upward move with the stochastic remaining in a bullish trending environment. The daily chart has seen 10 consecutive up days and the daily stochastic has entered into an overbought/trending environment. Not a sell signal as this upward move could have a few more days in it, there are signs that the current upward wave could be becoming overextended. Technical resistance is between USD 12,478 – USD 12,987 with support at 10,812, above this level the trend remains bullish unless we see a lower high. Panamax Oct 17 Daily Support –12,470, 12,310, 11,300 Resistance – 13,570, 13,815 Resistance at USD 13,570 Support at USD 12,310 Stochastic at 92 Having looked over extended, the October futures produced only a small pullback followed by sideways action. We have now made new highs and are seeing a divergence with the short period RSI. Not a sell signal, it does warn that price action is once again looking over extended. Technically the trend is bullish above USD 12,310, below this level the bull bias will become neutral and increase the probability of a lower high. This is needed for a directional change in trend that should attract technical sellers.
|