Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 7th April 2023

David Nye - The London Fish Exchange

Published: 11th April 2023

This Article was Written by: David Nye - The London Fish Exchange

  

The Miami FoB Index continued its move down during the last week. The Index has broken under the $6.725 horizontal price support zone and appears to be heading towards the $6.36 horizontal price support zone.

The Composite Index broke below the green upsloping trendline and is currently at the same displacement as its prior low, shown with a blue horizontal line. The Composite Index has used this displacement as a support zone in the past. Notice how far the Composite Index has moved vs the Miami FoB Index in this recent pullback. The Composite Index has retraced 100% of it’s prior move while the Miami FoB Index has only retraced 38.1% of its prior move.

The Composite Index can continue to move lower but it’s nearing the lower end of its historical displacement. The Composite Index appears to be moving down quickly to reset for another move higher. The RSI has a similar story as the Composite Index. The RSI has retraced 61.8% of its prior rally and broken below its slow-moving average. Notice the divergence between the RSI and the Composite Index represented by the slope of the blue trendline drawn on each indicator. This usually means the momentum in the move down is weakening. The RSI does have history of finding support at its current displacement. Notice how large the spread is between the Composite Index and RSI moving averages vs the normal spread in the Miami FoB Index’s history. The spread between the moving averages is beginning to narrow, which is bearish.

  About This Analysis

About David Nye

David is a Senior Vice President in investment advisory with over 30 years of experience.

Based in Minnesota, USA he has a long history in technical analysis across a range of markets. David brings his experience to provide an independent insight into potential salmon pricing based on LFEX and DataSalmon data.

What is Technical Analysis?

Technical Analysis is used to try and identify price trends in the future. Analysts believe that by using factual past information (trading activity and price changes) it is possible to identify future price movement trends and is quite prevalent in commodity and forex markets but can be applied to any product.

Technical Analysis has been developing for over a century, and there are now hundreds of patterns and signals that have been created. They are often used in conjunction with other forms of research and analysis to help formulate, or support pricing trend opinions.

Purpose of the Analysis?

To provide an independent data-driven view of market pricing trends in the short and medium-term. As a potential tool, for users to access future pricing trends based on LFEX/DataSalmon derived market data.

How Does it Work?

On a regular basis (weekly), David will provide his independent analysis of LFEX and DataSalmon pricing data. The output will be to provide pricing trends based on the most up to date pricing received.

The analysis will show the expected trends and potential (price) levels, as well as other markers – for example, higher or lower price triggers that would affect the analysis of the trend – and what this might mean. It is data-driven, and will not, and does not, account for any other fundamental analysis, or weather or biological events for example. This is the same for any commodity product technical analysis.

Disclaimer

All information provided contains no guarantee whatsoever, especially of completeness, accuracy, timeliness or of the results obtained from the use of this information, and is provided without warranty of any kind, expressly or implied. In no event will, LFEX Ltd or DataSalmon, its member firms, or the partners, directors, officers, owners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information or for any consequential, special or similar damages, even if advised of the possibility of such damages. In no event and under no legal or equitable theory, whether in tort, contract, strict liability or otherwise, shall LFEX Ltd or DataSalmon be liable for any direct, indirect, special, incidental or consequential damages arising out of any use of the information contained herein, including, without limitation, damages for lost profits, loss of goodwill, loss of data, work stoppage, the accuracy of results, or computer failure or malfunction