Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 17th March 2023

David Nye - The London Fish Exchange

Published: 20th March 2023

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

  

The Miami FoB Index appears to be rolling over near the $7.26 horizontal price resistance zone. The green upward sloping trend line and the green horizontal lines should offer support for the Index.

The first thing I noticed when I saw the chart was the divergence between the Composite Index and the RSI. This is a sign the upward price momentum is weakening. Normally when I see a setup like this the Index price should pull back along with the Composite Index and the RSI. The next rally will “usually” push the Miami FoB Index price and RSI to make a higher high and the Composite Index will make another lower high generating a sell signal. There is a lot of history in the Composite Index near its current displacement. I put a green horizontal line on the Composite Index for your assistance. Think of the width of the green horizontal line more as a width of a sharpie or marker vs. the width of a fine pencil.

This displacement could be support for the Composite Index. The RSI is also approaching a possible support area, the green horizontal dashed line. The RSI has made three prior peaks near its current displacement, meaning this displacement could be used for support for the RSI. If not, the next logical displacement area for the RSI is its red fast-moving average or the blue slower moving average.

  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