Technical Analysis: LFEX Norway Exporters Salmon Index, 30th May 2023

David Nye - The London Fish Exchange

Published: 30th May 2023

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

  

The Oslo FoB Index rallied 6.4% in the last week. The Oslo FoB Index broke above the blue down sloping trendline, and prices accelerated higher to end the week.

The Oslo FoB Index also broke above the 115.71 NOK resistance zone. The Oslo FoB Index appears to be heading to test the 121.14 NOK horizontal resistance zone and the red down sloping trendline. There is another price moving average just above the current Oslo FoB Index price that could challenge the move up in prices. The Oslo FoB Index did make a higher high this week.

The Composite Index has rallied to the same displacement as the all-time recorded highs for the Oslo FoB Index in March 2023. The Composite Index was showing a divergence signal in March 2023. I don’t see divergence in the Composite Index today. This displacement in the Composite Index also signalled a significant top in prices in June of 2022. The Composite Index is near the higher end of its historical range and still has room to move higher.

The RSI has also moved higher during the last week. The most recent bottom in the RSI was near the 33 displacement. The 33 RSI displacement is below the displacement where a bull market would operate. The big question for the RSI is will it rollover under the 65(ish) displacement area? The RSI (14) has range rules. In bull markets, the RSI (14) operates in the 40(ish) displacement area and above. In bear markets, the RSI (14) stays below the 65(ish) displacement area. Each security uses its own specific displacement zones but the 40(ish) and 65(ish) displacements are good general guidelines. The moving averages on Composite Index and RSI are about to turn positive, which is another bullish development.

  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