Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim 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 Miami FoB Index has stabilized in the last week. The Index had a modest gain this week vs its downtrend since early March 2023.

Notice the little “fishhook” pattern, (sorry), in the price chart for the Miami FoB Index. When prices start to turn back up this pattern must show itself. The Index has not made it down to the $6.39 price support zone which gives a bit of doubt to the turn in the Index price currently.

The Composite Index also has the “fishhook” look. The Composite Index is at the lower end of its historical displacement history and has history of making turns at this displacement. The Composite Index is at a lower displacement (level) than its previous low while prices are at a higher displacement. The Composite Index is more oversold at higher prices. This is bullish.

The RSI has also turned up. The RSI history at its current displacement isn’t as clear as the Composite Index history. The Composite Index and the RSI are diverging with each other meaning the move down is losing momentum. It usually only takes one divergence signal to get a change in the price. However, at times it can take two more divergence signals to develop before the Miami FoB Index price will change. The bearish view for the Miami FoB Index is that the moving averages on the indicators are converging, and each indicator may be moving up to test a negative crossover of its moving averages.

  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