Day Hagan Tech Talk

DAY HAGAN TECH TALK

PERSPECTIVE

SUMMARY

The PowerShares DB Agriculture Fund (DBA) chart shows a good example of how bottoms are formed.

WRITTEN BY

Art Huprich, CMT

POSTED

May 17, 2016

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Day Hagan Tech Talk, May 17, 2016

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Opportunity Knocking sign

In my opinion, the successful investor will pay attention to the news and opinions but also knows that discerning long-term price trends may also make a big difference in the overall success of a portfolio.

Market volatility continues to be high in most areas, including the stocks, interest rates and commodities. Often, periods of higher volatility are signs of a direction change and come near market bottoms. In terms of the commodity market and more specifically the agriculture market, as defined by the PowerShares DB Agriculture Fund (DBA), downside volatility seems to have peaked in early February.


DBA PowerShares DB Agriculture Fund

Summary: The chart of the PowerShares DB Agriculture Fund (DBA) is a good example of how bottoms are formed. Following a drop of almost 34% between early 2014 and early 2016, DBA consolidated. It now appears to have turned a corner and is poised to “stair-step” (2 steps up, 1 step down) higher.   

Have a great week.

Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management

— Written 05.17.2016. Chart courtesy of Stockcharts.com. Image courtesy of Kimball Charting Solutions.

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