The chart below looks at commodities ETFDBC over the past decade. Since its highs in 2008, DBC has been a great asset to avoid. But times change and the question today is whether or not it's time to start paying attention -- and potentially own -- this hard-hit ETF?
Check out the rare price situation below in DBC.
The CRB (Commodities Index) has been down 5 years in a row, which has never happened in the history of commodities, not even in the 1930s when they fell 5 years in a row. It's been a rare exodus from this sector, to say the least.
DBC hit falling channel support earlier this year and has since rallied. Over the past year, it looks like DBC has been forming a pennant pattern that's about to end.
DBC is testing a triple breakout test at (1) above. If it can breakout above moving averages and falling resistance at (1), it should attract some buyers for this out-of-favor, hard-hit sector.
From a macro perspective, we're looking at a big test for this ETF.