Sunday, February 21, 2016

Agriculture (DBA): The 'Aggies' Continue to Converge

I've mentioned before that agriculture (DBA) (like many resource based stocks/ETF's at the moment) appears to be in bullish declining wedges and have been for a long time, too. Agriculture looks the most enticing of the bunch because it's been squeezing very tightly at the moment. This should portend a significant move up at some point in the near future. I previously recommended DBA at the end of January and since then aside from a small decline my strong long/buy recommendation still stands. Momentum (MACD) has been slowly moving in a positive direction and hopefully a break above zero will happen, and soon too as there very little room left to maneuver. Stops should be set at around $19.50.