alice

NFTRH; Commodity Sector Daily Technicals (med. priority)

A simple daily chart of DBC, which tracks the CRB index fairly well.

DBC is cracking the SMA 50 today on the global trade uproar. We have noted CRB in a bear flag but also in an uptrend by its SMAs 50 & 200. That is still the case. What’s more, as it stands now DBC is not doing anything it has not done on 3 previous occasions since November (yellow highlights).

A loss of the uptrend channel would not be positive and would imply a test of the rising SMA 200, but it would still not kill the longer-term uptrend. I am not saying I would ride commodity related positions down to the SMA 200, but investors should know that parameter in order to manage accordingly. Personally, I want to see the channel hold to stay on the inflation trade to the moderate degree I am on it.

dbc