Technical Analysis: LFEX DataSalmon Miami FoB ‘D’Trim Index, 3rd February 2023

David Nye - The London Fish Exchange

Published: 6th February 2023

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

  


The Miami FoB market continues to rally. Prices appear to be heading to the next price resistance zone at $6.96 and then $7.26.

I’ve redrawn a few diagonal trend lines to help with support and resistance work. Prices could be making a head and shoulders top. I’ve marked the left shoulder and the head. The right shoulder would form near this displacement in prices. Usually, the right shoulder would have a form similar to the prices and shape of the left shoulder. Head and shoulder patterns are bearish for prices. I believe prices are due for a mild pull back and then will continue to move higher. The main reason is the Composite Index. The Composite Index is making its second highest displacement in the available history of the Miami FoB.

Notice what happened the last time the Composite Index was at this displacement at the far left of the chart. This displacement wasn’t the final high in prices. The market paused and prices resumed their ascent while the Composite Index made lower highs, divergence. The shorter term high came three months later. The final high in prices didn’t arrive until almost a year later. The RSI is at a displacement that has stopped previous rallies or marked highs in prices. Specifically, the left shoulder and head marked on the current chart. It’s very possible the RSI continues to move higher, but this is an area of concern. As mentioned earlier, I believe the Miami FoB market price probably is heading to the $6.96 area and then will need to rest or pull back to reset for another move higher.

  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