Sunday, December 8, 2013

BDI Baltic Dry Index Weekly Chart Negative Divergence Sideways Channel

The positive divergence on the BDI daily chart was highlighted a few months back and the upside was enjoyed for the shippers such as DRYS, GNK, EGLE, DCX and others.  The breakout of the yellow sideways symmetrical triangle on the weekly chart above also forecasted the bullish happiness ahead. The target for the triangle is 1900-ish already achieved satisfying the triangle pattern. At the same time of the triangle breakout the breakout above the downward-sloping channel occurred and all this signaled a recovery in the shipping sector. This occurred with a rally in coal stocks and steel as well. So the ship has already sailed, as  the old saying goes.

The red lines show that the party is coming to an end and those expecting a robust global economy are likely going to have to wait a while longer. China just released strong export data today but that bump should be short-lived. The expectation is for the BDI to now settle-in to a sideways range forward signaling a global economic environment that is lackluster and simply stumbling along. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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