Commodities Breaking Out Above Key Resistance Level (DBC)

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May 8, 2018 6:17am NYSE:DBC

From Chris Kimble: The below chart looks at Commodity ETF DBC on a weekly basis over the past 8-years.

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.

DBC currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #2 of 114 ETFs in the Commodity ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

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