DBA is clearly forming an ascending triangle pattern. With global supply chains showing no sign of improvement, fundamentally agriculture is set to benefit massively from rising prices. This is an obivous long if we manage to break above 19.50 on decent volume.
This break out of the descending channel looks legit and probably see's higher prices. Looks like a basic basket of agricultural goods is going to become even more expensive. Pattern target -> $20.50
Fund Holdings subject to change
FUTURES % OF NET ASSETS
Live Cattle 9.78
1. Commodity Currencies
Australia, Canada, and New Zealand all have commodities that fluctuate with respect to commodity prices. As demand for these countries' export has risen and commodities have increased in value, these three currencies have appreciated. As the dollar depreciates, commodities become cheaper.
A. Aussie Dollar
This ETF has been my favourite since 2020. With the scarcity in supply from agriculture segment and the incoming waves of inflation, this could be one good bet for agriculture sector. It's looking like a small cup and handle with the neckline at 19.19, it's looking pretty good if there's good volume to push for breakout. Let's see how the US Market goes for next...
Idea for DBA:
- Agriculture on an uptrend but testing a down TAIL resistance.
- Rejected at resistance, re-testing.
- Watching for the short if rejected again, or fakes breakout to the sliding parallel and fails to breakout.
*This is for those that are interested in boring long-term trades.*
We might be setting up for a multi year bull run on agricultural commodities. In 2020, soybeans, corn and wheat saw massive gains. This rally might continu in 2021.
First of all a short article on the correlation between the USD and commodities:...
I like everything about this one
1. Break out of the long term down trend (not completely out of it but moving in the right direction)
2. All macro behind it is looking great
3. Anti-inflation hedge
4. Very underpriced compared to equities
5. Rotation in commodities might be a theme for 2021
This is a long term, slow growing asset class. Do not expect any...
As the slope of the 200 day SMA is down it always its a bit of a fight to bust it. A break above the 200 day and if the slope can be bend up and could be a nice long term investment to hedge your rising food prices.