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The DB Agriculture ETF (DBA) was featured in ChartWatchers on October 1st because it fashioned a big cup-with-handle sample, which is a bullish continuation sample. The ETF battled its resistance zone the remainder of the month and broke out to new highs in November. Flash ahead to January and we have now a short-term bullish consolidation and breakout working.
The chart beneath reveals DBA with the cup-with-handle breakout and damaged resistance turning into assist after the breakout (crimson/inexperienced shading). Discover how DBA fell sharply in early December and the damaged resistance zone held as consumers stepped again in (assist). “Damaged resistance turns assist” is a traditional tenet of technical evaluation that merchants can use to catch post-breakout throwbacks (return to resistance).
The DB Agriculture ETF prolonged its consolidation into January with costs holding above the resistance breakout. That is additionally an indication of power as a result of the breakout is holding. A triangle of types fashioned (blue strains) and DBA broke out with a bounce the final 4 buying and selling days. This consolidation digested the good points from mid-September to late November and represents a bullish continuation sample, or relaxation throughout the uptrend. The breakout indicators a continuation greater and new highs are anticipated.
TrendInvestorPro makes a speciality of discovering bullish setups inside greater uptrends in our core record of 129 ETFs. We even have a Composite Breadth Mannequin for broad market timing in addition to an ETF Rating and Development Sign Desk. Click here to take your charting to the next level.
Be aware that StochClose (125,5) and the Development Composite are two trend-following indicators obtainable on the TIP Indicator Edge Plugin for StockChartsACP (here).
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Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic method of figuring out pattern, discovering indicators throughout the pattern, and setting key worth ranges has made him an esteemed market technician. Arthur has written articles for quite a few monetary publications together with Barrons and Shares & Commodities Journal. Along with his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Enterprise College at Metropolis College in London.
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