Is Base Metals ETF (DBB) Rallying After Hitting 2009 Lows (weekly chart)?

click chart to enlarge

I usually don't invest in commodities but I went long on DBB on 2/2/16 based on the above chart after it reached a relatively long-term low

Of note on the chart is the recent bottom at about the same price as 2009, a break above the falling price wedge (blue lines), and the break above the pennant (blue lines) on the RSI portion of the chart. The RSI has shown a series of higher lows and now higher highs.


It will be interesting to see what happens if DBB keeps climbing and hits the falling resistance line (dashed red) that is currently at about $13.


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Not Investment Advice | Important Disclaimer: 

The content in this article, including the identification and discussion of any specific security (e.g., bond fund), is NOT meant to be and should NOT be construed and/or used as investment advice. This article is for general information and educational purposes only. Please read the Disclaimers  for junkbondrecycling.com in their entirety. The U.S. Securities and Exchange Commission website has guidance on selecting an investment adviser.

Financial Disclosure:
The author/publisher is long DBB at the time this article was written. This position may change depending on future price action.

Base Chart Provided Courtesy of StockCharts.com.  Analysis and Annotation by JunkBond Recycling.com (all rights reserved)