Back during Week #11 (March 13 – 19) the Baltic Handysize
bulk carrier index passed upwards through our possible
support/resistance area of 475 – 500.
The index had previously pierced this area in its downward run post-New Year 2017.
Referring to the charts, we can see the index built on support around 300 in mid-2016, and again in the 375-400
zone, just prior to the volatility seen over the US Presidential election period.
Should the current upward trend continue, some support may consolidate in the previously-mentioned 475-500 region as things average out.
There may be some weakening of this trend shortly; however the MACD crossed into positive territory in Week #12 (Mar 20 -26).
The RSI showed upward over-reach during 2016, seeing values in the 80-90 area.These days, the RSI is in neutral territory in the 40s.
Naturally, beware sudden enthusiasm amongst ship-owners causing major newbuild orders. Our floor area of 300 may then prove to be a testing ground for support (or lack thereof, hah!).
Splash 247 reported a series of recent KamsarMax orders.
Of course, a Kamsarmax is outside our Handysize discussion, but newbuild ordering can be a very contagious virus. Any slowdown in scrapping of older vessels, in a scramble for better rates, will have a similar effect. This nasty fever may be rising.