Predictive accuracy of the RSI in the shipping freight market (dry bulk sector)

• Main Author: Tee, Sandrina Jie Yi
• Other Authors: Okan Duru
• Format: Final Year Project
• Language: English
• Published: 2019
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/78527
• Institution: Nanyang Technological University

Shipping has been known to be one of the most volatile industries, with the ability to wipe out a few years of earnings in just a few short months. Hence, ship owners would have to act prudently in their investment decisions in order to thrive in this competitive market. As such, this study aims to look into the predictive accuracy of technical indicators to help provide some certainty or a form of reference for making investment decisions. As concluded in the paper, “How rewarding is technical analysis? Evidence from Singapore stock market” , technical analysis, with the Relative Strength Index in particular, has been shown to generate profitable trades through the Singapore Exchange over a time span of 21 years. This hence serves as a motivation for this study to test the accuracy of Relative Strength Index on the shipping market in hope of providing a useful tool for investors.