The Baltic Dry Index, a measure of commodity shipping cost, is expected to slip towards 1,700 this week, as its trending signal has turned bearish.

The index failed to develop an uptrend around a key support level at 2,060.

As the following drop seems to be accelerating, it becomes less possible for the index to rise in the medium term.

A bearish head-and-shoulders pattern formed on its daily chart, with the index having completed a pullback to the neckline resistance at 2,980, the downtrend resumed towards the Dec 5, 2008, low at 663.

Resistance is at 2,179, and a rise above would open the way towards 2,829.