Dry Bulk FFA: Panamax Index- The current trend remains bullish


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.

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Source: Freight Investor Services (FIS)


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