Wednesday, June 29, 2016

Agriculture ready for launch?

Agriculture ETF DBA is in a long term downtrend since early 2011.However lately it moved fast, off a recent bottom at around 19.5
Lately DBA tried to penetrate a low supply zone between 23-24.5 however unsuccessfully and then retraced towards 2/1 Gann support where it bounced.
We expect DBA to move (soon) above 23 where it will quickly penetrate the aforementioned low supply zone and then move towards a heavy supply zone between 24.5-26 where it will probably stall (possibly around year end).
Therefore:

Is DBA ready for a launch?

If it manages to stay above 20.5 then probably it is indeed ready.