DBC plunges, losing $0.33 (-2.46%) within a single day

PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team


DBC crashes, losing $0.33 (-2.46%) within a single day
DBC breaks back below 200-day moving average
DBC finds buyers at key support level


DBC ended Monday at 13.10 tanking $0.33 (-2.46%). This is the biggest single-day loss in over three months.

Daily Candlestick Chart (DBC as at Sep 21, 2020):

Daily technical analysis candlestick chart for PowerShares DB Commodity Tracking ETF (DBC) as at Sep 21, 2020

Monday's trading range has been $0.30 (2.26%), that's far above the last trading month's daily average range of $0.15. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DBC.

One bearish candlestick pattern matches today's price action, the Black Candle.

After trading down to 12.96 earlier during the day, the ETF bounced off the key technical support level at 13.09 (S1). The failure to close below the support might increase that levels importance as support going forward. The market closed back below the 200-day moving average at 13.12 for the first time since September 15th. When this moving average was crossed below the last time on September 4th, DBC lost -2.44% on the following trading day.

Though DBC is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for DBC. Out of 377 times, DBC closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 52.25% with an average market move of 0.09%.

Market Conditions for DBC as at Sep 21, 2020

Loading Market Conditions for DBC (PowerShares DB Commodity Tracking ETF)...
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