DBA Agriculture ETF Daily Chart H&S Gaps Two Leg Bear Flag

DBA agriculture daily chart shows the price top in early March. The January/February occurred due to the Middle East turmoil. The overbot conditions and negative divergence in late February into March created the spank down. An H&S remains in play with head at 35.5, neck line at 32, this targets 28.5, a critical area of horizontal support if you reference a weekly chart. The intial test at 32 in May was successful for the bulls to hang on but watch next time when price comes down to 32.

There are three gaps open above that will need filled some day in the future. The pink lines show the two leg bear flag currently in play, now finishing up with the sideways consolidation zone. If price starts down for the second leg from 33, this pattern targets 30.2-ish, the gap fill area and horizontal support.

The 20 MA is under the 50 MA which is bearish. Note the red lines showing the uptrend in the indicators, a long and strong profile. This would simply point to a 33.2 gap fill and, as mentioned, watch this area to see if the second leg down starts for the bear flag. If, however, price decides to go upwards, and overcomes the resistance of the 50 MA at 33.4 above, then the gap fill up at 35 is on tap.

Thus, we are at a critical juncture now; watch to see if the second leg down begins from 32.6-33.3, if so, target is 30.2, if not, then price will test the 50 MA and if it pokes up thru, target would be the 35 gap fill. Either way, putting this short term analysis aside, on the intermediate to longer term basis, direction is sideways to sideways down 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 or any links connected to this information. Consult your finanical advisor before making any investment decision.