Technical Analysis: LFEX Norway Exporters Salmon Index, 24th February 2023

David Nye - The London Fish Exchange

Published: 27th February 2023

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

  

The Oslo FoB Index is also continuing its strong rally. The Index is up 12.7% in a week. The Index price is challenging its all-time highs from late April to early May 2022.

Most of the time I’d expect to see the Index’s price momentum to slow down and consolidate its gains near the all-time highs in price, however, it is not a rule. The Index price is also challenging the 128.90 NOK price resistance zone. I put in some additional resistance zones, red horizontal dotted lines. I also put in some horizontal price support lines shown in green. The Composite Index rolled over but is testing its fast-moving average, an area of support for the Composite Index.

The current displacement in the Composite Index has produced some topping areas in the past. I drew a red dotted horizontal line to help your eye look back and see what has happened at this displacement for the Composite Index. The RSI also rolled over and is now bouncing back up challenging its highs from earlier in the week. There is divergence between the RSI and the Composite Index in the very short term, see the black trend line on both indicators. When we see divergence between the indicators, it’s usually a sign that the momentum is weakening.

  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