DBC closes higher for the 2nd day in a row
PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Oct 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DBC finished Wednesday at 13.32 gaining $0.09 (0.68%) on low volume.
Daily Candlestick Chart (DBC as at Oct 14, 2020):
Wednesday's trading range has been $0.07 (0.53%), that's far below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DBC. Prices continued to consolidate within a tight trading range between 13.16 and 13.34 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on October 5th, DBC gained 0.38% on the following trading day.
After trading down to 13.27 earlier during the day, the market bounced off the key technical support level at 13.28 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 13.42 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 13.16 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for DBC. Out of 87 times, DBC closed higher 60.92% 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 10 trading days, showing a win rate of 57.47% with an average market move of 0.42%.