DBC closes above its opening price after recovering from early selling pressure
PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Oct 13, 2020 | by Techniquant Editorial Team
DBC finished Tuesday at 13.23 edging higher $0.03 (0.23%). Trading up to $0.06 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DBC as at Oct 13, 2020):
Tuesday's trading range has been $0.08 (0.61%), that's far below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DBC.
Prices are trading close to the key technical resistance level at 13.28 (R1). After having been unable to move lower than 13.17 in the prior session, the market found buyers again around the same price level today at 13.16. The last time this happened on October 7th, DBC gained 0.99% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 13.08 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for DBC. Out of 420 times, DBC closed higher 49.29% 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 three trading days, showing a win rate of 55.00% with an average market move of 0.08%.