In the May 16th Keys To This Week (access requires subscription) we first pointed out that the PowerShares DB Agriculture Fund (DBA) appeared to be resuming its February advance. A week later, in our May 23rd report, we said that, despite a failed chart pattern in DBA, the recent sustained move above its 200-day moving average continued to suggest that a major bullish trend change was emerging.
On Tuesday June 7th we pointed out that that the next formidable overhead resistance level was an additional 2% higher at $22.85 and said:
“we would consider taking profits on a test of $22.85 as this major benchmark low appears unlikely to be broken on the first try, especially considering the ETF’s near-vertical rise from its May 23rd low.”
The chart below shows that DBA has been testing $22.85 resistance yesterday and today, which equates to an 8% gain since we first identified this asset as a buying opportunity on May 16th.