PowerShares DB Base Metals Fund ( DBB:NYSE ) - Not Yet !
The shares of PS DB MultiSect Met ( NYSE:DBB ) or PowerShares DB Base Metals Fund ( NYSE:DBB ) did not reach the target level [ Close below 21.02 ] [A] and therefore it is time to reexamine the chart for a possible entry level for a short position.
In the last session the share price reached a high of 21.38 and then closed at 21.32 on a low volume of 211,708 shares.
The only potential negative is the " Evening Star " that was formed in the daily chart. The other technical indicators all suggest more upside. That would be in keeping with the position taken that the S&P 500 Index ( NYSE:$SPX ) still has some upside before a top is established.
With the close at 21.32 the next upside Fibonacci Resistance is at 21.85 and Support is at 21.20. If the Top is in and only if, then one can select a target level for a short position. An aggressive entry would be on a close below 21.08. A more conservative entry would be at either 20.90 or 20.60 depending on one's risk level. Should the share price continue to rise, then one will have to wait for evidence that the Top is in or near before selecting an entry level.
The calculated Daily Resistance and Support levels for POWERSHARES DB BASE METALS FUND (DBB) are given below.
- R4- 22.21
- R3- 21.89
- R2- 21.57
- R1- 21.45
- DC- 21.32
- S1- 21.13
- S2- 20.93
- S3- 20.61
- S4- 20.29
[A] http://www.benzinga.com/trading-ideas/technicals/150337/dbb-a-candidate-...
