February 17, 2017
The Capesize Index has continued to weaken, and has recently broken the US$ 5,354 support from May 2016. Technically bearish, the index remains in oversold territory on the weekly chart, and is due some form of an upward move, be it a consolidation period or something more sustained.
Resistance on the weekly chart is at US$ 6,570, and this is a key level going forward. A close above this level would suggest that the longer term downward move has run its course and suggest the market should either form a longer term base, or start a new upward trend. Market shorts should be tightening risk at this point.