Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 31st March 2023

David Nye - The London Fish Exchange

Published: 3rd April 2023

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

  

The Miami FoB Index continues to pull back in price. The Miami FoB Index currently is on top of the $6.72 horizontal price support zone.

There is a confluence of support at the $6.36 horizontal price level. Confluence is using unrelated techniques to arrive at the same conclusion. This makes the $6.36 support zone a stronger zone of support, but it doesn’t have to be the support zone the market uses. It does raise the probability of $6.36 zone being the likely support zone the market is heading towards. The Composite Index broke underneath its slow-moving average and the grey and green trendlines.

The Composite Index does have history of support and resistance at its current displacement, increasing the odds this displacement will be used again. The RSI is at its slow-moving average and could offer support for the RSI. The RSI has also used this displacement as support and resistance. In early March 2023, I mentioned that the grey and green trendlines on the RSI were crossing over and this usually signals a change or acceleration in direction for the security. That crossover hit the high for the Index. Notice the grey and green trendlines on the Composite Index will crossover in early May 2023. This can help with your timing expectations.

  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