Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 20th January 2023

David Nye - The London Fish Exchange

Published: 23rd January 2023

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

  

The Miami FoB Index move to higher prices has been slowing down the last few weeks. The Index is near the $6.26 horizontal resistance line.

The Index price appears to be rolling over. For example, picture a bike rider reaching the top of a hill and starting down. The red horizontal lines are areas of resistance for the Index. The green horizonal lines are support areas support for the Index. The Composite Index is at a high displacement compared to its history. The Composite Index can continue to go higher but at some point, it will need to reset lower. The Composite Index does have history at this displacement. I put some red downward pointing arrows to help you. What has happened to the Miami FoB Index price after reaching this displacement?

What happens to the Miami FoB Index price when the Composite Index reacts downward from this displacement? The RSI still has room to move higher. The RSI has used this displacement as support and resistance in its past. I don’t see any divergence between the indicators and price in the shorter time frame. In the longer time frame, there is divergence shown by the pink trend lines drawn on the indicators.

  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