Baltic Dry Index – Weekly Review
The BDI is often viewed as a leading indicator of economic activity because changes in the index reflect supply and demand for key materials used in manufacturing. In most cases, it is well correlated with the market and is considered a harbinger of broader market moves.
In our updates, we evaluate the index through technical signals, candlestick formations, and Elliott Wave structures.
CANDLES
Global Trade remains strongly bullish in both the mid and long term. The weekly signal has become overbought and overstretched, making a pullback likely. Attention now shifts to the quarterly close and the possibility of a Double Bottom, in addition to several bullish signals not seen since 2002.
Elliott Waves
No changes to the long term EW perspective.
Summary:
The BDI has been bullish since February 2025. After a summer–early fall consolidation, the index is now developing a strong leg higher, as previously forecasted.
If the index avoids a double-digit decline in December, the closure of the super-long frames will be spectacular.
Happy Trading!
