What Message Are Commodities Sending To The Markets? (DBC)

Share This Article
August 16, 2018 6:11am NYSE:DBC

From Chris Kimble: Commodities are becoming a hot topic… and an important investing theme.


With the US Dollar coming back to life, commodities have pulled back. And that pullback now has the “equal weight” complex in trouble.

Below is a chart of the Thomson Reuters Equal Weight Commodity Index. The green shaded area represents a 20-year rising channel (point 1).  Within that channel, however, commodities have formed a multi-year downtrend (point 2 – marked in red).

Using the all-time high and the early 2016 low, we can identify key Fibonacci levels. One level is the 23.6% Fib, which proved to be stiff resistance (point 3), marking a bearish reversal as well.

Currently, the Commodity Index is attempting to break 20-year channel support (point 4).

Investors should watch for follow-through selling on the Index (as confirmation).

Commodities just may be sending an important global macro message to investors!

Commodities Index “Long-Term” Monthly Bar Chart

The Invesco DB Com Indx Trckng FundETF (DBC) was unchanged in premarket trading Thursday. Year-to-date, DBC has declined 0.00%, versus a 6.01% rise in the benchmark S&P 500 index during the same period.

DBC currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #24 of 113 ETFs in the Commodity ETFs category.


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


Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular


From Our Partners


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories