FIS Technical - Capesize

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1 Technicl Report Technicl Anlyst FIS Technicl - Cpesize Edwrd Hutn Edwrdh@freightinvesr.com Client Reltions Andrew Cullen Andrewc@freightinvesr.com Highlights: Cpesize Index- Holding in the support zone. The index still needs bullish confirmtion. Q3 A symmetricl tringle hs broken the downside, however the bullish divergence mens still needs confirmtion tht support hs become resistnce. Cpe v Pnmx Q3 17 spred The men reversion is now in ply. The short term corrective hs not proved be truly berish yet. Q3 v Cl 18 A descending tringle bullish divergence, cution on following in downside brekout. The informtion provided in communiction is generl in nture only nd does not constitute dvice in reltion investment nor constitute ny recommendtion on our prt. The informtion hs been prepred out tking in ccount your investment objectives, finncil sitution or knowledge nd experience. Freight Invesr Services Limited is uthorised nd regulted by the Finncil Conduct Authority (FRN ).

2 Technicl Report Cpesize Index Resistnce 13,214, 13,772, 15,301, 19,602, Support 11, 414, 10,862, 9,468 The index held its support lst week nd resulted in bullish close on the weekly cndle. However the cndle itself ws quite smll nd remins below the 8 period EMA, suggesting more needs be done convince tht technicl bounce is upon us. The schstic remins neutrl round the 50 level, however volume hs strted increse s hs open interest, though is mrginl. A close bove the 8 period EMA (US$ 13,214) would lso be bove lst week s high nd suggest the support zone should hold. However close below US$ 11,414 would imply berish continution, trgeting the US$ 10,862 support. Techniclly in support zone, we need see more upside momentum if the bull trend is continue. Note the 3 yer monthly verge hs returned % nd the 5 yer verge is flt. Source Bloomberg Cpesize Q3 17 Dily Resistnce 15,116, 16,400, 16,753, 17,008 Support 14,385, 13,770, 13,083 Lst week we highlighted the symmetricl tringle pttern tht ws in ply. A neutrl technicl pttern tht needed brekout confirm the next directionl move in the mrket. Techniclly the sfer ply is wit for confirmtion tht the previous support hs become resistnce. The downside move hs resulted in bullish divergence suggesting tht resistnce in the ner term t US$ 15,116 could yet be tested. A close bove the resistnce would neutrlize the technicl brekout. If resistnce levels hold, then mrket sellers should trget US$ 12,898, s is 100% move mesured f the pex the pttern nd the next logicl re support. for execution. These re not suitble for ll invesrs. For ny further informtion or discuss the use these plese spek

3 Technicl Report Cpesize v Pnmx Q3 17 Spred Resistnce 6,372, 6,945, 7,275, Support 5,580, 5,360, 4,625 The Cpe v Pnmx Q3 17 spred hs strted men revert bck the 50 period MA. Lst week we highlighted the disprity, nd noted tht lthough the trend ws bullish it ws dngerous re enter fresh longs. The spred is now mking lower highs nd lower lows which is berish in the ner term. The the corrective phse is the support zone between US$ 5,580 nd US$ 5,360. If the support levels hold nd the spred trdes bck bove US$ 5,928 then it is likely tht we re witnessing men reversion nd not berish trend. Techniclly we hve entered in corrective phse. However the mjor high/lows (rther the 1 dy swing high lows we re witnessing) in the trend currently remin in bull terriry. At point it looks like men reversion nd should not be clssed s ber trend yet. Source Bloomberg Cpesize Q3 v Cl 18 Dily Resistnce- 999, 1,270, 1,383, 1,637 Support 377, 238, (-47) The Cpesize Q3 v Cl 18 spred remins in consolidtion zone in the form descending tringle. Techniclly is berish pttern due the lower peks in the pttern. However technicl brekout is needed for confirmtion pttern. Mrket neutrls should wit for before entering. The schstic is turning lower, however ny downside brekout t point would crete in bullish divergence, nd could result in flse brekout. Confirmtion support becoming resistnce will be needed before entering the sell side becuse. Buyers need see either higher low before entering from the long side, or close bove US$ 999. As would crete new high nd mrket buyers should be looking for technicl bounce before entering mrket long. for execution. These re not suitble for ll invesrs. For ny further informtion or discuss the use these plese spek

4 Technicl Report Technicl Anlysis Glossry Pivot Point A point where the mrket mkes new high or low, before reversing in direction. Trend Line A directionl line connecting pivot points. Primry Trend The min trend line over n extended period time. Secondry Trend Distinct from but in the primry trend. Indictes recent trend. Support A previous mrket low where mrket prticipnts hve been prepred enter long positions. Resistnce A previous mrket high where mrket prticipnts hve been prepred enter short positions. Rnge An re between the support nd resistnce. Reltive Strength Index (RSI) A technicl momentum indicr tht compres the mgnitude recent gins recent losses in n ttempt determine overbought nd oversold conditions in n sset. The RSI rnges from Typiclly speking, n sset is deemed be overbought once the RSI pproches the 70 level, nd likewise, s the RSI pproches 30, it is deemed be oversold. Fiboncci Retrcement Refers res support or resistnce. A Fiboncci retrcement shows the potentil retrcement finncil sset reltive the originl move in price. A trend line is drwn between two points nd then the verticl distnce is divided by Fiboncci rtios; 23.60%, 38.25%, 50.00%, 61.80% nd %. This ol cn lso be used s projection method. Moving Averge Convergence Divergence (MACD) A trend-following momentum indicr tht shows the reltionship between two moving verges prices. The MACD is clculted by subtrcting the 26-dy exponentil moving verge (EMA) 12-dy EMA. A nine-dy EMA the MACD, clled the "signl line", is then plotted on p the MACD, functioning s trigger for buy nd sell signls on the crossover the two lines. The hisgrm highlights the nrrowing nd widening the two verges cting s n indicr for slowing or incresing momentum in the mrket. I.E flttening or decresing hisgrm in n upwrd mrket would suggest tht the upwrd move could soon stll. for execution. These re not suitble for ll invesrs. For ny further informtion or discuss the use these plese spek

5 Technicl Report Awrd winning broker In 2015 FIS ws nmed s the best performing inter-deling broker in Iron Ore swps by Singpore-bsed SGX AsiCler for the third consecutive yer. For More informtion on report plese contct: Edwrd Hutn Tel: +44(0) E-mil Edwrdh@freightinvesr.com for execution. These re not suitble for ll invesrs. For ny further informtion or discuss the use these plese spek