Technical Analysis: LFEX Norway Exporters Salmon Index, 24th March 2023

David Nye - The London Fish Exchange

Published: 27th March 2023

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

  

The Oslo FoB Index also had a mild retracement in price of 3.30% in the last week. The Index appears to be heading to the 114.38 NOK price support zone.

There is also a grey upsloping trendline that should offer additional support in that price area. The Oslo FoB Index didn’t react at all to the red upsloping trendline that should have offered some support. The Composite Index is near the lower end of its displacement history. There is also a lot of history near this displacement that could offer support for the Composite Index. Notice that the Composite Index has made V and W bottoms near its current displacement in the past. The Composite Index current displacement is lower than its prior low from early March 2023. The Oslo FoB Index is at a higher price vs the lows in the Composite Index. This is usually a bullish setup.

The Composite Index is more oversold at higher Oslo FoB Index prices. The moving averages on the Composite Index have a negative displacement. The RSI moving averages also have a negative displacement and the spread between the moving averages is increasing, this is bearish. The RSI does have history at its current displacement. The RSI has used this displacement area as support and resistance. The RSI also has the same signal as the Composite Index and its displacement from early March 2023. The RSI is more oversold at higher Oslo FoB Index prices. This is bullish. On a side note, if a person was trading the Oslo FoB Index, the setup of the Composite Index or RSI testing the positive or negative crossover of their moving averages has produced large moves in the Index.

  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