Bullish Technical Set-Up for DBC

With the breakdown in the Dollar, and the powerful thrust in crude oil prices, and buoyancy in metals such as gold, silver, alumininum, copper, and the industrial metals, the pattern that is developing in the PowerShares DB Commodity Index ETF (NYSE: DBC) is fairly conspicuous. Let's notice that Friday's low at 21.42 was followed by today's potent up-gap open and strong action-- the type of action expected at the end of a correction (in this case off of the 8/05 high at 24.00), and at the beginning of a meaningful rally effort. The early September action is not unlike the mid-July action in the DBC, with one important exception: now the price structure pivoted off of the flattening 200 DMA, whereas in July the recovering price action smacked right into a sharply declining 200 DMA. The current pivot low and potential upmove has considerably less technical headwind than its predecessor, and along with a dollar "friendly" environment, represents a much more bullish technical set-up than earlier this year. MJP 9/08/09 12:20 PM ET (22.10/11)

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!