MIKE PAULENOFF'S ETF TRADING DIARY
The DBA (Deutsche Bank Powershares Agricultural Commodity Fund, ETF) is showing some pop today finally, no doubt in reaction to the sharp upmoves in Soybeans and Corn (wheat continues to lag), which indicate the start of new post-correction, recovery uplegs.
Looking at the daily charta, the DBA remains stuck within a sideways coil-type pattern that is attached to a Double Bottom at 35.38/37 established on 4/01 and 5/01. A "coil" attached to the "Double Bottom" in my experience (and this combination is more rare than common) represents the "rest period" prior to a sharp recovery rally period. In this case, I am expecting the DBA to hurdle near term resistance at 37.15/20, which should trigger upside follow-through to 38.00/30 next
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