Technical Analysis: LFEX Norway Exporters Salmon Index, 30th December 2022

David Nye - The London Fish Exchange

Published: 3rd January 2023

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

  

The Oslo FoB Index held onto its large gains from the prior week, a sign of strength. The Index is respecting the 89.43 NOK horizontal resistance line and the black upward sloping trend line.

The Index is diverging with both indicators. The Index is at a higher high vs the corresponding highs in the indicators. I put in a vertical line from late November 2022 to help you see the divergence. This setup has bearish implications for the Index. The bullish view is that the spread on the moving averages is continuing to converge. The Composite Index appears to be rolling over to test the positive crossover of it’s moving averages. The moving averages on the RSI have crossed over to a positive displacement. Time will tell if the RSI and / or the Composite Index test the crossover of their respective moving averages. The RSI has more history at its current displacement than the Composite Index.

I included a new Oscillator to this week’s chart. The 7 Detrend Oscillator. The Oscillator subtracts two price moving averages and plots the difference in a line chart. Last week’s Index matched three displacement highs in the 7 Detrend Oscillator history. Two of the three occurrences marked a high for the Index but not the final high. Notice the occurrence marked with a vertical line from March of 2022, the oscillator came down and tested the same displacement that the oscillator is testing now. Adding strength to this displacement is the oscillator respected this displacement in early December of 2022.

  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