DBC dominated by bears dragging the market lower throughout the day
PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Oct 19, 2020 | by Techniquant Editorial Team
DBC ended Monday at 13.28 edging higher $0.01 (0.08%) on low volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DBC as at Oct 19, 2020):
Monday's trading range has been $0.11 (0.82%), that's below the last trading month's daily average range of $0.15. 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.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on October 12th, DBC actually gained 0.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 13.11 where further sell stops could get triggered. As prices are trading close to October's high at 13.42, upside momentum might speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DBC. Out of 85 times, DBC closed higher 55.29% 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 10 trading days, showing a win rate of 52.94% with an average market move of 0.19%.