Gapping up and surging in Week 48, the Clean Tanker Index took a sizable jump to close the week at 792, displaying
enough strength to pop through our upside resistance ideas around 675-700.
Previous highs in this area were in early 2017, and the RSI reached well into peaky territory at 87.17. Following along, the lagging MACD 's bullishness strengthened with the move.
Our thoughts that the index might have the strength to push through the 675-700 resistance now seem a little tame. Overall however, it remains to be seen how sustainable the Week 48 spike is. It may be resilient enough to retain the 675-700 area as support, but as we said previously, let's see how peakish the Clean Tankers might be.
For Week 48 the Dirty Tanker Index continued its apparent spring-winding motion, maintaining its position midway between our 1200-1225 upside resistance target and our 900-925 support ideas. Closing at 1132 in a fairly tight range, the index left a barely-visible upper wick on the Week 48 candlestick.(The week's high at 1135)
Grasping at straws....or wicks? Perhaps, but the spring may be reaching its winding limit. The RSI showed a still-peaky 82.28 as the MACD 's bullishness continued to fade away.
Further up-moves would be challenging 2014 highs; would anything higher mean a return to those heady pre-2009 rates?
Lofty dreams indeed.