DBC remains in a downtrend creating lower highs and lower lows inside of channel (1) since 2009. It hit support of the channel back in 2016 and has been creating a series of higher lows ever since, inside of channel (1).
Over the past few months, DBC has created a series of higher lows and flat highs, creating a potential bullish ascending triangle. DBC is clearing the top of this pattern at (2), which sends a positive message.
If a breakout continues, the measured move suggest DBC could rally around 10% to at least the $19.50 level.
The PowerShares DB Com Index Tracking Fund (DBC) was unchanged in premarket trading Tuesday. Year-to-date, DBC has gained 6.44%, versus a 0.02% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.