DBA and the DollarRecent declines in the dollar have previously lead to large rallies in DBA. As of yet the current decline in the dollar has not done much for DBA, however I anticipate this to change soon if the dollar continues the current pull back through the summer. A retest of the ~88-89 level on DXY may be coming and if so, DBA may break out of the current down trend which started with the dollar rally.
The declining trend line noted on the chart represents about ~17% gain and would be a reasonable target.
DBA trade ideas
DBA Agriculture ETF, weeklyDBA Agriculture ETF
On 3/3/14 it broke out from the 25/2/2008 downtrend line
channel (blue). On the recent correction, it rejected nicely
the 20 sma, above the line(circle).
The recent rise, may be attributed to a somewhat rising
inflation expectations since Jan14', and a general
bear market commodities rally ( also late cyclical sector ),
which could be extended into late summer/2nd half.( AUD,EEM )
It tagged the projection line ( black ) channel,
momentum has based-corrected, and has potential for
another rally, while has still room for further consolidation
on current levels, in the short term, as well.
Targets : 29.39, 30.87, 34.21 (11' high)
Support 27.42, 27.00
Stop 26.60
Agriculture is Outperforming EverythingAgriculture is outperforming everything: US debt, emerging markets equity and debt, US equities, FTSE, gold, oil, copper, bitcoin....pretty much everything. I'm not buying because I've got other opportunities I'm focused on, but I think this trend still has legs.
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Buy DBA on pullback near $27.50, 1st target at $35.50.The DBA seems to have started it's bullish long term up wave 5/. Buy on pullback near the former line linking the tops since 2008 and corrective wave 2 target of 38.2% retracement of wave 1, near 27.50. Target of wave 3 at 35.50 with stop at around 25.45/24.95.