Sunday, September 18, 2016

Agriculture (DBA) Quietly Appearing Bullish

Agricultural ETF DBA has been pummeled since late June but in that time has produced a fantastic looking bullish declining wedge. A new buy signal was produced on Friday which has me looking at other commodities too, now (more on that tomorrow). DBA is bearishly aligned within it's EMA's so caution is urged, a caution which is echoed by it's low volumes, too. Lower highs however have appeared on the RSI(5) creating some divergence with the MACD joining the chorus. I know next week is a critical week for the market with the FOMC on Tuesday but DBA should get a serious look by day traders who can have a long/buy at around $20.40 with tight stops around the EMA (9) or (13).