Let’s back out all talk of fundamentals, inflation, broad market views, US dollar, etc. and simply view a chart.
The commodities ETF (DBC) is in a bullish pattern by daily chart. We’ve been noting CRB’s “interesting” daily chart look (and less pleasant weekly chart look) in recent NFTRH reports, but here we dial in the view and note that DBC has moved above a neckline and held the 200 day moving average this week. Today it is pausing, perhaps to refresh.
It could drop to test support (SMA 200) at any time (which would be a miser’s buying opportunity) but as long as it remains above 15 it is in a short-term bullish stance. I am going to buy some for a trade and speaking personally, limit risk below the SMA 200 and/or 15. If successful, the theoretical measured target is 16.30.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.