Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 22nd May 2023

David Nye - The London Fish Exchange

Published: 22nd May 2023

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

  

The Miami FoB Index has been resting near the $6.23 horizontal support zone for several weeks. There is a gold upsloping trendline that should offer additional support for the Index.

The $6.23 price area has been an important area of resistance for the Miami FoB Index which would imply that it could be an important area for support. Since early March 2023 the Miami FoB Index has been making lower lows and lower highs.

The Composite Index is diverging with the RSI and the Miami FoB Index. I drew in a thicker blue line to help you see the divergence on the indicators. The Composite Index is near the lower end of its historical displacement and appears to be turning higher. Notice that when the Composite Index does rally it will be rallying into the negative crossover of its moving averages.

The RSI is also near the lower end of its historical displacement. The current RSI displacement has been used as support and resistance. The RSI is also turning up close to the 40 displacement. The 40ish displacement is important to area for the RSI to hold. This is additional evidence that raises the probability the Miami FoB Index is still in a bullish move higher and this current pullback is a correction in a bull market.

This is an interesting setup for a bullish trade on the Miami FoB Index. The Miami FoB Index is at a horizontal support zone along with a trendline acting as additional support. The indicators are diverging with each other. If a person traded the Miami FoB Index, they could consider buying the Miami FoB Index in this price area and if the price goes below $6.20, sell it and take a small $.10 or .$15 loss. If the Miami FoB Index rallies, a likely target would be one of the red horizontal resistance zones along with the red down sloping trendline. The challenge to this bullish setup is the negative crossover in the indicators 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