Sunday, May 3, 2009

DBA revisited: Breakout to the Upside?


I discussed DBA in the post "DBA and Hard Freeze in Oklahoma", with the daily chart showing a symmetrical triangle running out of space. Standard TA says the break will be to the stock's prevailing trend, in this case down. Well, it seems to be breaking to the UPSIDE.

In other words, the stock is breaking to the direction that the general market has been going. Add to that the recent weakness in US dollars, and you have upside breakouts in commodity-related stocks.

And here's an interesting Ag stock, FEED, covered by a fellow SKF blogger Eric. Here's the link to his analysis. It is a Chinese feed company that makes and sells fodder for pigs. From Eric's charts, it looks like the stock is consolidating nicely after two big jumps on massive volume.

No comments:

Post a Comment