DBC closes below its opening price unable to hold early session gains
PowerShares DB Commodity Tracking ETF (DBC) Technical Analysis Report for Oct 21, 2020 | by Techniquant Editorial Team
DBC ended Wednesday at 13.32 losing $0.11 (-0.82%). Trading $0.07 higher after the open, the ETF was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DBC as at Oct 21, 2020):
Wednesday's trading range has been $0.18 (1.34%), that's above the last trading month's daily average range of $0.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 13.27 and 13.47 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Tweezer Top.
Prices are trading close to the key technical support level at 13.28 (S1). After having been unable to move lower than 13.30 in the previous session, the market found buyers again around the same price level today at 13.29. The last time this happened on October 13th, DBC gained 0.68% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for DBC. Out of 33 times, DBC closed higher 54.55% 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 57.58% with an average market move of 0.51%.