DBC closes above its opening price after recovering from early selling pressure
PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
DBC ended the month 5.12% higher at 12.94 after gaining $0.07 (0.54%) today. Trading up to $0.07 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DBC as at Jul 31, 2020):
Friday's trading range has been $0.10 (0.77%), that's below the last trading month's daily average range of $0.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DBC.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 3rd, DBC gained 0.83% on the following trading day.
Prices are trading close to the key technical resistance level at 13.04 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 13.05 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for DBC. Out of 204 times, DBC closed higher 52.45% of the time on the next trading day after the market condition occurred.