Invesco DB Commodity Index Tracking Fund ( DBC) is getting a boost from higher precious metals, sugar and a weaker U.S. dollar.
Let's check the charts and indicators of the ETF.
In the weekly candlestick chart of the DBC, below, I can see an improving picture. Prices are testing the underside of the 40-week moving average line. A bottom reversal pattern can be seen in March.
The weekly OBV line started to edge higher in March. The Moving Average Convergence Divergence (MACD) oscillator is crossing upwards to a cover shorts buy signal.
In this daily Point and Figure chart of the DBC, below, I see that it is projecting a major upside price target in the $69 area. Impressive.
In this daily bar chart of the continuous sugar futures contract, below, I can see an upside breakout from a long consolidation pattern. This is just one of the commodities powering the DBC higher.
Bottom-line strategy: Traders could go long the DBC on a shallow dip towards $24 risking below $23.
