NEW BULLISH Plays
PowerShares DB Agriculture Fund - DBA - close 23.89 change -0.22 stop 23.25
PowerShares DB Agriculture Fund (the Fund) is a separate series of PowerShares DB Multi-Sector Commodity Trust (the Trust). The Fundâ€™s subsidiary is DB Agriculture Master Fund (the Master Fund), a separate series of DB Multi-Sector Commodity Master Trust (the Master Trust). DB Commodity Services LLC serves as the managing owner, commodity pool operator and commodity trading advisor of the Fund and the Master Fund. The Bank of New York Mellon serves as the administrator of the Fund and the Master Fund.
Target(s): 24.60, 24.95
Key Support/Resistance Areas: 25.00, 24.70, 24.40, 23.55, 23.40
Time Frame: Several weeks
Why We Like It:
DBA has broken a downtrend line that began on 1/6/10. The ETF has struggled with a secondary downtrend line but I think its only a matter of time before DBA makes another push higher and breaks through it. DBA also appears to be forming a higher low on its daily chart. Today the ETF sold off to its 20-day SMA from above. I am expecting this support hold and for DBA to make a run up towards its 200-day SMA which is currently just over $25.00. Our most aggressive target is $24.95 while our first target is $24.60. We will use a tight stop at $23.25 which below May's lows.
Suggested Position: Long DBA stock at current levels
Suggested Position: Buy August $23.00 CALLS, current ask $1.20
Entry on July xx
Earnings Date N/A (unconfirmed)
Average Daily Volume: 792,000
Listed on 7/6/10