Support – 8,950, 7,717, 7,555
Resistance – 9,770, 10,198, 10,350

The Supramax index continues to make higher highs and higher lows, whilst remaining above both the 34 period EMA and 50 period MA; this is keeping the trend in a bullish environment.

There is a resistance zone between US$ 9,770 and US$ 10,198, an area we are now at. Market sellers should now be on alert for any rejection candlesticks (I.E. long tails) or strong bearish weekly candles, as this would confirm that resistance levels are being respected in the near term. A failure to make a new high would have bearish implications in the near term.

A close above the top of the resistance zone creates a new high and signals bullish continuation. From a technical perspective it is best to wait for a pullback to confirm resistance has become support, rather than walking into a false breakout.

The stochastic is overbought, but in a trending environment.

Supramax Q3 17 Daily
Support – 8,795, 8,470, 7,800
Resistance- 9,222, 9,512, 9,932

The Q3 futures have closed below the previous low of US$ 9,215 and neutralised the bullish trend.

In theory support should become resistance, in reality it is more of a resistance zone between US$ 9,222 and US$ 9,512. Any failure here would be considered as bearish as the market would be creating lower highs, signalling the Q3 futures are entering into a corrective phase.

For market buyers US$ 8,481 is the key support to focus on as the stochastic is currently oversold. Any rejection off the support level would suggest an upward move, however to become a bullish continuation and not just an upward swing they would need to see higher consecutive lows.

Supramax Cal 18 Daily
Support – 8,915, 8,600, 8,168
Resistance – 9,144, 9,345, 9,598

The Cal 18 futures in theory have close below the most recent support at US$ 8,915. Technically this support is still in play as the close below the support was marginal.

The Stochastic that monitors the market momentum is now in oversold territory as we enter the current support levels. Technical sellers should wait for price confirmation in the form of further market lows that preferably confirm that the previous support is now acting as a resistance level.

A close back above the support would signal to short term traders that there is potential for an upward swing, as support will have been deemed to have held and the stochastic at this point should be heading upwards.

The technical would suggest the Cal 18 futures could be entering into a corrective phase due to the lower lows. A lower high than the previous market high would confirm this.

Supramax Q2 V Cal 18 Daily
Support – (-210), (-464), (-665)
Resistance– 91, 210, 376

The Q2 v Cal 18 spread, like the Cal 18 futures are testing current resistance levels. If the resistance level holds then the spread will have created lower highs and this will be considered as bearish, or at least corrective in the near term.

The stochastic is oversold but remains in bearish territory and should not yet be considered as bullish.

Market buyers should hold off from buying into the resistance level at US$ 91 at this point, and look for the spread to either close above the resistance, and confirm that is now acting as a support (this would also put the stochastic back above 30). Or look for a rejection of the US$ – 210 level before entering.

Source: FIS