Dry Bulk FFA: Supramax Index Bottoming Out

The index is now on wave 4 of a wave C corrective move and starting to show signs of basing.

The March futures have completed their wave 4 correction and have now started a wave 5 bull move. The stochastic is low compared to price, if a new high is not replicated by the stochastic it would create a bearish divergence. A warning of slowing momentum, not a sell signal.

Elliott wave analysis would suggest that the Q2 futures are now on wave 5 of wave 3. We are now seeing a bullish divergence as the market makes new highs.

Cal 19 remains bullish above the 8 period EMA but is showing a bearish divergence.

Above the 50 period MA market pullbacks should be regarded as corrective rather than bearish.

Source: PTI


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