Technical Analysis: LFEX Norway Exporters Salmon Index, 21st April 2023

David Nye - The London Fish Exchange

Published: 24th April 2023

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

  

The Oslo FoB Index also appears in the early stages of attempting to change direction from down to up.

The Oslo FoB Index tested the 118.10 NOK support zone and appears to be respecting the support zone. The light blue upward trendline also offered additional support for the Index near the 118.10 NOK horizontal support zone.

Notice the displacement of the Composite Index and its moving averages. We’ve seen this setup many times. When the indicator tests the positive crossover of its moving averages and the indicator finds support; this is when we can see large, rapid price advances for the Oslo FoB Index. The Composite Index has history at its current displacement with similar price setups. Price setups that are ending corrections in a bull market for the Oslo FoB Index. I put some green arrows on the Composite Index to help you.

The RSI has a similar setup as the Composite Index except the RSI moving averages still have a negative displacement, but the displacement is converging rapidly. IF the RSI can rally or go up now, and if we fast forward a week to two from now and look back at the chart, the RSI would appear to be testing the positive moving average cross over of moving averages.

The bearish view for the Oslo FoB Index is there could be a head and shoulders topping pattern forming in the price chart. The Oslo FoB index could be rolling over from the high of the right shoulder. The head and shoulder topping pattern would need to break below the 107.26 support zone for confirmation.

  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