BDI Baltic Dry Index Daily Chart Negative Divergence

Baltic daily chart shows negative divergence across the board over the last month so price will receive a spank down. Lots of traders are getting bullish on BDI now but Keystone says tread softly. Price will fall in the daily time frame now, but, in the weekly time frame, the indicators are mixed between negative divergence and long and strong profiles, thus, the weekly chart must see price come back up after a pull back to get all the indicators lined out with negative divergence and confirm this current topping action. Thus, an M Top is a likely candidate moving forward. There is no reason for buying here, price will fall, then come back up to form the M Top, then roll over.

The ramifications are serious for the global recovery since less movement of grains, ores, and other dry goods means sicker markets overall. First thing is first, watch price move lower, then when it comes back up we will take another look. Key support is 1930, 1880 and 1750 with key resistance at 2250. A projection would be down to 1900, then back up to 2100-2200, then roll over. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.