BDI Baltic Dry Index Weekly Chart Positive Divergence Downward-Sloping Channel

The Baltic indicates the health of the dry bulk shipping industry (think grains, powders, coal, iron ore, etc...), the building blocks of a global recovery. The shipping industry, similar to Dr. Copper, are great forecasters of the future strength of economies and markets. Look at how the good times were rolling at the 2008 commodities bubble top before collapsing.  Interestingly, the BDI rolled over in April-May 2008 but the commodities bubble did not peak and pop until a couple months later in July 2008. The first sign of trouble during 2008, just before the waterfall crash, was the empty ships, sitting at the piers, the captain sitting in a lawn chair on shore, drinking iced tea, and strumming an acoustic guitar rendition of Otis Redding's classic Sittin' on the Dock of a Bay.

Back to the near term, if 1000 resistance gives way, the next upside resistance target is 1200-1300 which is the confluence of horizontal support, the upper rail of the channel and the 50-week MA (which is sloping downwards moving towards 1300). Note the 20-week MA is coming down to form a confluence with the 1000-ish area right now. Price moving above the 20 MA will open the door to the 1200-1300 target. The ROC is over the zero line which is bullish.

The entire 1000-1300 resistance zone is critical since we find out if the shipping industry is recovering (which means a global recovery is on the way) with a move up and thru, or, price is spanked back down and continues thru the descending blue channel showing that recessionary and depressionary times are in all our futures.  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.