Sunday, October 11, 2015

DBA Ag Commodities Daily Chart Double Bottom 'W' Bottom

Commodities are feeling love again. Keystone highlighted the falling wedge, oversold conditions and possie d (green lines) forecasting a strong move higher, which occurs although the move was tricky with price coming back down for the double bottom. In late September the possie d remained so you knew another recovery move was likely which occurs. Keystone took profits on the trade and exited but is considering reentering on pullbacks.

The double bottom is encouraging for ag commodity bulls. The W pattern bottom is very encouraging since it is one of the most powerful patterns in trading. A W pattern bottom typically leads to higher prices into the intermediate term. When a W bottom occurs under the 50-day and/or 200-day MA's, as is the case above, this increases the amount of upside power the pattern has for the weeks and months ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.