Technical Update - Danish consumer shipping on the move pushing the sector higher. Energy shipping struggling Technical Update - Danish consumer shipping on the move pushing the sector higher. Energy shipping struggling Technical Update - Danish consumer shipping on the move pushing the sector higher. Energy shipping struggling

Technical Update - Danish consumer shipping on the move pushing the sector higher. Energy shipping struggling

Equities 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Danish shipping companies primarily transporting goods for consumers and industry have broken resistance levels or on the verge.
Shipping transporting energy and commodities are struggling
In this analysis : DSV, Nordic Transport Group, DFDS, D/S Norden, A.P. Moller Maersk and Torm.


DSV has broken above minor resistance at 1,169 confirming its uptrend. RSI showing positive sentiment and no divergence indicating higher levels are likely
Weekly chart shows uptrend with strong resistance at around 1,245. A close above that level there is room up to resistance area 1,360-1,376.
Weekly RSI is at the time of writing above 60 threshold. If it closes the week above it is back in positive sentiment on medium-term supporting the view of higher share price. 
For DSV to reverse the medium-term uptrend a close below 1,046 is needed. 

Source and data all charts: Saxo Group

NTG Nordic Transport Group has short-term broken above its resistance at around 264 and is now back above 200 daily SMA. RSI is showing positive sentiment with no divergence despite being slightly overbought. A minor correction could be seen where NTG could test the 200 SMA from the upper side. However, the trend is up

NTG has broken bullish out of the wide falling channel it has been trading in since its 2021 peak – see weekly chart.
Weekly RSI is testing 60 threshold and if closing above medium-term sentiment is back in positive with no strong resistance until around 392.
If NTG slides back to close below the upper falling trend line in the channel and below its 200 weekly SMA bear trend is resuming.

DFDS is forming an Ascending like triangle pattern.  Bouncing from lower rising trend line and 55 SMA. A close above 273 will confirm uptrend with potential up to 300.
If DFDS closes below 250 a bear trend is under development that could take DFDS down to 230 support

Medium-term DFDS has formed a bullish trend currently testing its falling trendline and the 200 weekly SMA. A close above both the stock has confirmed the uptrend and weekly RSI is likely to be back above 60 i.e., supporting the uptrend. Resistance at around 300
If DFDS slides back to close below 250 the uptrend is in jeopardy. A close below 230 will confirm that.

A.P. Moeller Maersk is lagging the other shipping/logistics companies. Still range bound between 16,200 and 14,320 and needs to break out for direction.
Maersk is trading back above 55 and 100 SMA indicating the share price is likely to break out to the upside. RSI is still showing negative sentiment however, and needs to close above 60 to reverse that.
If breaking out bullish i.e., closing above 16,200 the 200 SMA will provide some resistance but there will be room, up to around 19,000.
A close below 14,320 Maersk is back in bear mode which can take the share price back to around 13,185-12,720.

D/S Norden is still in a medium-term bullish trend testing lower rising trendline. However, with divergence on weekly RSI the uptrend is weakening. A close below 325 is likely to reverse the uptrend.
If Norden trades higher and push RSI back above its falling trendline the divergence could be cancelled.

Short-term (Daily chart) D/S Norden is in a downtrend forming what could turn in to a falling wedge.
However, if Norden closes above the upper falling trendline and RSI above 60 Norden could rally to resistance at around 405-411.
However, daily RSI is still showing bearish sentiment and is dropping back below 40 new lows and a test of the lower falling trendline on the price chart could be seen.
Support at 328 and strong support at around 305

Torm. The rally we have seen in energy prices has benefited Torm as a shipping company transporting oil products. Share price went up five fold in 2022 but now seems to be collapsing.
First sell-off has bounced from 0.382 retracement and support at around 160. A close below last week’s low at 158.70 is likely to fuel another sell-off down to support at 140.

On daily chart Torm is forming a falling wedge like pattern (needs to touch both falling trendlines a total of five times to be considered a wedge) not yet confirmed though.
There is strong overhead resistance with the upper falling trendline and the 55 and 200 Simple Moving Averages declining. RSI showing negative sentiment confirms the bearish outlook.
If RSI drops back below 40 the selling pressure is likely to increase.
For Torm to reverse the bearish trend a close above 195 is needed.

 

RSI divergence explained: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend



Author has a long position in DFDS and NTG

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.