Monday, July 21, 2014

Agriculture (DBA) Update

Thinking for a moment this morning that I was working on my UNG chart, I discovered a larger channel that helps explain DBA's movement of late. Overall the stock is on a larger decline (as one can notice below) but contact has been made with the lowermost band and bounced nicely at around $26.00. I would therefore expect a break out (shown by the blue arrow) of the smaller red inter-channel descent. There are two intermediate resistance lines so pauses or even bounces can be expected off of them in the course of its movement to the furthest resistance line. Profitably taking advantage of countertrends is always risky and quite speculative but this one looks a little too good to pass up!

Jakob Richardson © 2014