DBC breaks back above 200-day moving average
PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DBC finished Wednesday at 13.22 surging $0.24 (1.85%). This is the biggest single-day gain in over three months. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DBC as at Sep 16, 2020):
Wednesday's trading range has been $0.18 (1.38%), that's far above the last trading month's daily average range of $0.13. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DBC.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 20th, DBC actually lost -0.97% on the following trading day.
The market managed to close back above the 200-day moving average at 13.15 for the first time since September 3rd.
While the ETF is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for DBC. Out of 77 times, DBC closed higher 57.14% of the time on the next trading day after the market condition occurred.