Momentum in PowerShares DB Agriculture Fund ETF (DBA) has been accelerating to the downside over the past month and a half. On Friday, June 4, DBA made a clear break through $23.38 support of a small descending triangle formation on increasing volume. Watch for a retracement back towards the breakout level for an entry.
There are two clear support levels that DBA is likely to reach before this downtrend continuation is complete. The first support level is at 22.37, the low from March 3, 2009, followed by $21.52, the low from December 5, 2008.
Note on the chart the behavior of DBA from the beginning of the year each time it broke a trend line of a correction. It has so far behaved as might be expected each time the trend continued.
(www.etf-portfolios.com)
