I just got the updated chart for DBA.
Yesterday, the price went down back into the kumo; it did not exhibit a convincing break.
The saving grace is the volume is not very high which suggest that there is no major sell down.
Moving forward, we want to see it trading above 24.57 and definitely above the support level of 24.36 defined by the kumo.
This could be either a
- cup and handle forming in progress
- or a failed cup formation
Wilmar is currently among one of the stronger stocks in STI.
On March 12, the chart shows a bullish signal.
Tenkan sen crosses the kijun sen.
The volume is not very high; a reflection of the current weak market conditions.
On the weekly chart, it has not break through the kumo resistant yet. Weekly resistant level is at around $3.72
The recent US rally has also seen this stock spike out of its channel.
Expect a little bit of pullback. This one is going into my watchlist.
The PowerShares DB Agriculture (DBA) has a gap up the day US announced that they are buying back US bonds over the next 6 months.
Price level held steady at the gap level and is out of the kumo resistant at around $25.
The volume is above average, however, the price has not move rapidly up.
This is probably a sign a knee jerk reaction to the weak US dollar rather than increasing demand.
Howver, in the long run, US dollar seems poised to go downwards further with the Fed printing more money.