PowerShares DB Agriculture Fund (DBA) : Time to retrace

DBA has a fantastic run up since breaking through the kumo resistance back in July.

As with all run ups, it will ultimately need to take a break before going higher.

In this case, the resistance can be found in the Weekly Chart at around $28 established back in June 2009


At this moment, I still can’t tell how far it will retrace. Though, a good entry on the Daily Chart will be around $27 near the kumo support level.

PowerShares DB Agriculture (DBA) Update

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

 

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PowerShares DB Agriculture (DBA)

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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.